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CIHM/ICMH 

Microfiche 

Series. 


CIHIVI/ICMH 
Collection  de 
microfiches. 


Canadian  Institute  for  Historical  Microreproductions  Institut  Canadian  de  microreproductions  historiques 

1980 


Technical  and  Bibliographic  Notes/Notes  techniques  et  bibliographiques 


The  Institute  has  attempted  to  obtain  the  best 
original  copy  available  for  filming.  Features  of  this 
copy  which  may  be  bibliographically  unique, 
which  may  alter  any  of  the  images  in  the 
reproduction,  or  which  may  significantly  change 
the  usual  method  of  filming,  are  checked  below. 


L'Institut  a  microfilm^  le  meilleur  exemplaire 
qu'il  lui  a  6t6  possible  de  se  procurer.  Les  details 
de  cet  exemplaire  qui  sont  peut-dtre  uniques  du 
point  de  vue  bibliographique,  qui  peuvent  modifier 
une  image  reproduite,  ou  qui  peuvent  exiger  une 
modification  dans  la  m6thode  normale  de  filmage 
sont  indiquds  ci-dessous. 


0 


D 


D 


/ 


D 


Coloured  covers/ 
Couverture  de  couleur 


I      I    Covers  damaged/ 


Couverture  endommag^e 


Covers  restored  and/or  laminated/ 
Couverture  restaurde  et/ou  pellicul6e 


I      I    Cover  title  missing/ 


Le  titre  de  couverture  manque 


Coloured  maps/ 

Cartes  g^ographiques  en  couleur 


Coloured  ink  (i.e.  other  than  blue  or  black)/ 
ere  de  couleur  (i.e.  autre  que  bleue  ou  noire) 


I      I    Coloured  plates  and/or  illustrations/ 


Planches  et/ou  illustrations  en  couleur 

Bound  with  other  material/ 
Relid  avec  d'autres  documents 

Tight  binding  may  cause  shadows  or  distortion 
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Blank  leaves  added  during  restoration  may 
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mais,  lorsque  cela  dtait  possible,  ces  pages  n'ont 
pas  6X6  filmdes. 


□    Coloured  pages/ 
Pages  de  couleur 


D 
D 

n 
n 
n 

D 
D 


Pages  damaged/ 
Pages  endommag6es 

Pages  restored  and/or  laminated/ 
Pages  restaurdes  et/ou  pellicul6es 

Pages  discoloured,  stained  or  foxed/ 
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obtenir  la  meilleure  image  possible. 


y 


Additional  comments:/ 
Commentaires  suppldmentaires; 


Map  missing  from  this  copy. 


□    This  item  is  filmed  at  the  reduction  ratio  checked  below/ 
Ce  document  est  filmd  au  taux  de  reduction  indiqud  ci-dessous. 


10X 

14X 

18X 

22X 

26X 

30X 

y 

f 

12X 


16X 


20X 


24X 


28X 


32X 


The  copy  filmed  here  has  been  reproduced  thanks 
to  the  generosity  of: 

Douglas  Library 
Queen's  University 


L'exemplaire  film6  fut  reproduit  grSce  d  la 
g6n6rosit6  de: 

Douglas  Library 
Queen's  University 


The  images  appearing  here  are  the  best  quality 
possible  considering  the  condition  and  legibility 
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Les  images  suivantes  ont  6t6  reproduites  avec  le 
plus  grand  soin,  compte  tenu  de  la  condition  et 
de  la  nettotd  de  l'exemplaire  film6,  et  en 
conformity  avec  les  conditions  du  contrat  de 
filmage. 


Original  copies  in  printed  paper  covers  are  filmed 
beginning  with  the  front  cover  and  ending  on 
the  last  page  with  a  printed  or  illustrated  impres- 
sion, or  the  back  cover  when  appropriate.  All 
other  original  copies  are  filmed  beginning  on  the 
first  page  with  a  printed  or  illustrated  impres- 
sion, and  ending  on  the  last  page  with  a  printed 
or  illustrated  impression. 


The  last  recorded  frame  on  each  microfiche 
shall  contain  the  symbol  — ^  (meaning  "CON- 
TINUED"), or  the  symbol  V  (meaning  "END"), 
whichever  applies. 


Les  exemplaires  originaux  dont  la  couverture  en 
papier  est  imprim6e  sont  filmis  en  commen^ant 
par  le  premier  plat  et  en  terminant  soit  par  la 
dernidre  page  qui  comporte  une  empreinte 
d'impression  ou  d'illustration,  soit  par  le  second 
plat,  selon  le  cas.  Tous  les  autres  exemplaires 
originaux  sont  filmds  en  commenpant  par  la 
premidre  page  qui  comporte  une  empreinte 
d'impression  ou  d'illustration  et  en  terminant  par 
la  dernidre  page  qui  comporte  une  telle 
empreinte. 

Un  des  symboles  suivants  apparaitra  sur  la 
dernidre  image  de  cheque  microfiche,  selon  le 
cas:  le  symbole  — *>  signifie  'A  SUIVRE",  le 
symbole  V  signifie  "FIN". 


Maps,  plates,  charts,  etc.,  may  be  filmed  at 
different  reduction  ratios.  Those  too  large  to  be 
entirely  included  in  one  exposure  are  filmed 
beginning  in  the  upper  left  hand  corner,  left  to 
right  and  top  to  bottom,  as  many  frames  as 
required.  The  following  diagrams  illustrate  the 
method: 


Les  cartes,  planches,  tableaux,  etc.,  peuvent  dtre 
film6s  d  des  taux  de  reduction  diffdrents. 
Lorsque  le  document  est  trop  grand  pour  dtre 
reproduit  en  un  seul  clichd,  il  est  film6  d  partir 
de  Tangle  sup6rieur  gauche,  de  gauche  d  droite, 
et  de  haut  en  bas,  en  prenant  le  nombre 
d'images  ndcessaire.  Les  diagrammes  suivants 
illustrent  la  mdthode. 


1 

2 

3 

32X 


1 

2 

3 

4 

5 

6 

llC-z. 


•  / ..; 


THE 


fiJatia^te  ^0ttthet:tt  Eaitaj 


COMPANY,      -  . 


The  limited  number  of  Pamphlets  which 
were  orio-inally  printed  having  been  exhausted, 
in  this  new  issue  some  few  changes  and  addi- 
tions have  been  made  to  conform  to  the  present 
status  of  the  undertaking,  and  the  actual 
distances  on  the  final  location  of  this  and  of 
connecting  Hnes  .westward. 

^Ew  York,  September  bth,  1811.  ' 


J 


\ 


^ 


.,  4#. 


3 


^Hw*l  41W?  wtt*f  Luiijww  •■lyur'  vy.  v-Mrmvfr » >.  i  w  i  >  m  ,n"'  ■!  '««j|»»i.i^;.w(ui  h  uw^i . 


^ 


rn 


T  H  K 


IliMda   fctttknt    ftrnkag 


CX3MPANY. 


PROSPECTUS,    REPORTS 


AND 


OTHER    DOCUMENTS. 


Itchy  |)orli : 

E    WELLS  SACKETT,  BOOK,  JOB  AND  LAW  PRINTER, 


Cor.  Wiij.iam  and  Pink  Stiskkts. 

1871. 


Officer^s    of    the    Company. 


MILTOI^  COURTRIGHT. 


JOHN  F.  TRACY,  DANIEL  DREW, 

SIDNEY  DILLON,  WM.  L.  SCOTT, 

WM.  A.  THOMSON,  JOHN  ROSS, 

0.  S.  CHAPMAN,  BENJ.  F.  HAM, 

MILTON  COURTRIGHT, 


NICOL  KINGSMILL. 
M.  H.  TAYLOR. 

F.  N.  FINNEY. 

WM.  J.  McALPINE. 

CROOKS,  KINGSMILL  &  CATTANACH, 

Toronto,  Canada. 

CHARLES    TRACY,      * 

New  York  City. 


121128 


; 


I 


PROSPECTUS 


OF      THE 


CANADA  SOUTHERN  RAILWAY 


COMPANY. 


The  object  of  the  promoters  of  the  Caxada 
Southern  Railway  is  to  form  with  other  Roads 
a  cheap  line  of  traffic  between  Chicago  and 
New  York,  so  located  and  constructed  as  to 
I  reduce  the  cost  of  transportino-  the  products  of 
the  Interior  to  the  lowest  limit.  The  line 
adopted  by  this  Company  with  its  connections 
will  accomplish  this  result,  being  practically 
level  and  straight  to  tide  water.  The  natural 
outlets  from  Chicago  and  the  Valley  of  the 
Mississippi  to  the  seaboard,  are  either  in  a 
Southerly  direction  along  the  Valley  of  the 
Mississippi  to  the  Gnlf,  or  in  an  easterly  direc- 
tion to  Lake  Erie ;  thence  along  its  borders  to 
its  eastern  terminus  at  Buffalo,  and  from  there 
following  the  plateau  that  extends  to  the  Mo- 
hawk, thence  to  tide  water  on  the  Hudson,  or 
by  a  line  through  Canada  to  Hamilton,  at  the 


M 


r, 

head  of  Lake  Ontario,  and  thence  by  the  Lake 
and  the  St.  Lawrence  to  tide  water.  All  rail- 
ways from  Chicago  to  the  seaboard,  between 
this  platean  and  the  Mississippi,  pass  over  for- 
midable mountain  ranges.  The  Erie  over  the 
Alleghanies  at  an  elevation  of  1,800  feet;  the 
Pennsylvania  at  an  elevation  of  2,200  feet ;  the 
Baltimore  and  Ohio  at  an  elevation  of  2,(>0() 
feet,  and  the  Chesapeake  and  Ohio  at  an  eleva- 
tion of  2,000  feet.  Upon  this  route  this  great 
mountain  range  falls  oif  at  the  sumnut  of  the 
plateau  mentioned  into  a  plain  only  420  feet 
above  tide  water,  and  145  feet  below  the  level 
of  Lake  Erie. 


ROUTE. 

The  Canada  Southern  Railway  is  located 
through  the  southern  tier  of  counties  in  the 
Province  of  Ontario,  the  most  populous  and 
fertile  agricultural  portion  of  the  Dominion  of 
Canada. 

s  Its  eastern  terminus  is  at  the  International 

^  *  Bridge,  noAv  being  constructed  over  the  Niagara 

River  at  Buffalo,  and  its  western  termini  are  on 
the  Detroit  River  at  Amherstburg,  near  its 
mouth,  229  miles  from  the  International  Bridge, 
and  (by  the  branch)  at  Moore,  on  th^^.  St.  Clair 
V  River,  (opposite  St.  Clair  in  Michigan,)  184  miles 

from  the  Bridge. 


B  Ijake 
11  rail- 
etwccii 
^er  t'or- 
7Gr  the 
et;  the 
ct ;  the 
[  2,()0() 
1  eleva- 
is  ^'reat 
,  of  the 
20  feet 
[le  level 


located 
ill  the 
us  and 
inion  of 

ational 
Niagara 

are  on 
lear  its 
Bridge, 
^t.  Clair 
H  miles 


CONNECTIONS. 

Its  eastern  connections  with  the  seahoard, 
will  be  by  the  existing  New  York  Central  and 
Erie  Railways;  the  Midland  Railway,  and  the 
Buffalo  and  Washington,  and  Pine  Creek  Rail- 
ways, now  in  the  course  of  construction,  which 
two  last-mentioned,  in  connection  with  the 
Pennsylvania  road,  will  furnish  two  additional 
lines  to  New^  York,  and  one  to  Philadelphia, 
Baltimore  and  Washington. 

Its  western  connections  with  Chicago,  will 
be  by  the  Chicago  and  Canada  Southern  Rail- 
way, from  opposite  Amherstburg,  as  well  as  by 
the  Peninsula  and  Midland,  and  the  Michigan 
Air-Line  Railwavs  from  St.  Clair,  all  of  which 
lines  are  now  under  construction. 

The  Railways  mentioned  will  make  four  dis- 
tinct lines  from  the  eastern  terminus  of  the 
Canada  Southern  to  New  York,  and,  with  the 
Michigan  Southern  and  Central,  five  distinct 
lines  from  its  western  termini  to  Chicago.  The 
Canada  Southern  will  thus  be  a  connecting  link 
between  great  systems  of  roads,  w^hich  can  now 
supply  to  it,  at  either  end,  a  traffic  equal  to  its 
utmost  capacity.  To  connect  these  important 
systems  there  are  now  but  two  existing  roads, 
viz. :  the  Lake  Shore  along  the  south  shore  of 
Lake  Erie,  and  the  Great  Western  of  Canada, 
with  its  proposed  "  Loop  Line  "  from  Glencoe 
to  Canfield.     It  is  also  the  most  direct  link  in 


the  line  of  coinnmnication  between  the  West 
and  the  New  Enghmd  States,  and  their  prin- 
cipal seaports. 

The  main  line  and  its  branch  are  located 
where  the  Detroit  and  St.  Clair  Rivers  may  be 
crossed  to  the  best  advantage,  either  by  ferries 
cr  by  bridging.  Ferry-boats  may  be  tempora- 
rily used,  but  public  convenience  will  demand, 
as  it  has  over  the  Mississippi,  that  bridges  over 
them  shall  be  built  as  soon  as  possible,  with  such 
provision  as  will  prevent  interference  with 
navigation. 

ALIGNMENT    AND    GRADES. 

Annexed  is  the  report  of  Mr.  F.  N.  Finney, 
chief  engineer,  in  which  Avill  be  found  in  detail 
the  lengths  of  the  maia  line  aiul  the  St.  Glair 
branch,  the  proportion  of  the  straight  and 
curved  lines,  as  well  as  of  the  grades  and  dis- 
tances between  objective  points,  as  compared 
with  other  lines.  Also,  the  report  of  the  Hon. 
Wm.  J.  Mc Alpine,  consulting  engineer,  who  by 
his  scientific  knowledge  and  long  practical  ex- 
perience in  the  construction  and  management  of 
some  of  our  most  important  railways,  and  in  his 
official  connection  with  the  railways  and  canals 
of  the  State  of  New  York,  has  had  a  very 
extended  and  diversified  knowledge  of  the  trade 
and  commerce  of  the  coTintrv,  and  also  of  the 
cost  of  transport  as  affected  by  the  diff'erence 


jL 


0 


i  West 
'  prin- 

ocated 
lay  be 
ferries 
npora- 
smaiid, 
is  over 
;h  such 
with 


^  limey, 

detail 

Ohiir 

and 

id  dis- 

ipared 

e  Hon. 

v^ho  by 

cal  ex- 

lent  of 

in  his 

canals 

very 

B  trade 

of  the 

erence 


of  grades,  alignment,  etc.,  upon  railways,  and 
who  has  made  and  published  many  comprehen- 
sive reports  upon  these  subjects. 

He  has  carefully  examined  the  report  of  our 
chief  engineer  Mr.  Finney,  and  presents  the  ad- 
vantages which  this  line  possesses  in  regard  to 
its  position,  grades  and  alignment. 

The  length  of  road  to  be  constructed  is  291 
miles,  of  which  96  per  cent,  is  straight,  with  no 
opposing  grade  exceeding  15  feet  per  mile,  and 
that  for  only  a  short  distance  in  any  one  place. 
•  The  distance  from  the  common  railway  center 
at  Buffalo,  by  tlie  main  line,  is  23  miles  less  to 
Toledo  than  by  the  Lake  Shore,  and  to  Adrian 
by  the  Chicago  and  Canada  Southern  Railway, 
it  is  48  miles  less  than  by  the  Lake  Shore, 

The  distance  by  the  main  line  and  the  Chi- 
cago  and  Canada  Southern  Railways  to  Chicago, 
is  33  miles  less  than  by  the  proposed  "Loop 
Line  "  of  the  Great  Western  and  the  Michigan 
Central ;  45  miles  less  than  by  the  Lake  Shore 
and  Michigan  Southern  "Air-Line,"  and  55 
miles  less  than  by  the  "  Old  Line  "  of  the  Mich- 
igan Southern. 

The  Chicago  and  Canada  Southern  Railway 
is  the  closing  link  between  the  western  terminus 
of  the  main  line  of  the  Canada  Southern  Railway 
and  Chicago.  The  maximum  grade  of  the  former, 
like  that  of  the  latter,  is  but  fifteen  feet  to  the 
mile,  with  an  alignment  neai'ly  as  favorable  as 
that  of  the  Canada  Southern. 


I 

I 

!       ■ 


10 

None  of  the  existino-  lines  of  railway  between 
Chicago  and  New  York,  have  been  located  and 
constructed  with  reference  to  cheap  transi)orta- 
tion.  The  great  and  increasing  traffic  between 
these  points,  now  demands  a  hne  of  railway 
which  will  afford  the  cheapest  transportation 
practicable.  With  a  few  changes  in  the  existing 
hnes  of  railway  between  Buffalo  and  New  York, 
grades  of  not  exceeding  fifteen  feet  per  mile 
and  good  alignment,  can  be  obtained,  which  will 
make,  in  connection  with  the  Canada  Southern, 
and  the  Chicago  and  Canada  Sonthern  Railwayj^, 
a  line  over  almost  a  level  plain,  the  entire  dis- 
tance from  Chicago  to  New  York. 

No  better  evidence  of  the  value  of  low 
grades  can  be  given  than  that  which  is  exem- 
plified by  the  experienced  managers  of  the 
Pennsylvania  Railway  Company,  who  are  now  en- 
gaged in  providing  a  low  grade  line  for  freight, 
between  Pittsburgh  and  1  Larrisburgh,  by  which 
they  will  abandon  250  miles  of  their  present 
main  line  for  through  freight  traffic,  although 
it  will  increase  the  length  of  the  line  to  be  run, 
02  miles,  and  involve  the  actual  construction  of 
110  miles  of  a  new  and  expensive  road. 

Another  instance  is  that  of  the  Hoosic  Tunnel, 
where  twelve  millions  of  dollars  will  be  ex- 
pended, mainly  to  reduce  the  grades  between 
the  Hudson  and  Connecticut  Rivers,  the  distance 
to  Boston  being  reduced  only  10  miles.  Similar 
changes  in  several  of  the  Great  Trunk  Lines  are 


11 


)etwccii 
ted  and 
is])orta- 
>etween 
railway 
)rtation 
Bxistiiig 
;v  York, 
►er  mile 
lich  will 
)iithern, 
ailwayf^, 
tire  dis- 

of    low 

s  exem- 

of  the 

now  en- 

freig'ht, 

y  which 

present 

though 

be  run, 

ction  of 

Tunnel, 
be  ex- 

3etween 

distance 
Similar 

ines  are 


in  contempL'ition,  all  of  which  show  that  the 
i  attention  of  the  most  judicious  minds  of  raihvay 
I  managers  is  earnestly  directed  to  lessening  the 
I  cost  of  transportation  by  reducing  grades. 
'      None  of  the  railways  between  Chicago  and 
;  New  York,  south  of  the  Lakes,  have  a  uni- 
form gauge.     A  gauge  of  four  feet  nine  to  four 
feet  nine  and  a  quarter  inches,  intervenes  in  all 
of  them.     The  Canada  Southern,  with  its  con- 
nections east  and  west,  will  form  a  through  line, 
relieved  of  this  objectionable  feature,  having  a 
uniform  gauge  of  four  feet  eight  and  a  half 
inches,  (the  prevailing  gauge  of  the  country,) 
over  its  entire  length. 

Another  important  object  to  the  northern 
roads  connected  with  this  line,  will  be  effected 
by  the  construction  of  the  Canada  Southern. 
Heretofore  the  northern  lines,  when  in  close  com- 
petition for  traffic,  or  in  a  contest  for  speed,  have 
been  closely  pressed  by  the  more  southerly 
lines ;  this  railway  will  change  the  position  of 
these  lines  in  that  respect,  in  favor  of  the  north- 
^ern  lines. 

The  advantage  which  the  Canada  Southern 
j possesses  in  the  matter  of  routes  and  grades, 
land  its  importance  to  other  lines  cannot  be 
jbetter  illustrated  than  by  the  discussions  of 
ithe  shareholders  of  the  Great  Western  Kail- 
iway  Company,  at  a  meeting  held  in  London, 
I  England,  in  July  last,  called  to  consider  the 
|building  of  the  '^Loop  Line"  from  Glencoe  to 


12 


Canfield,  extracts  of  wliich  Avill  be  tbuiid  lioreto 
ap])eiided. 

Tliese  gentlemen  who  expected  to  forestall 
tlie  construction  of  the  Canjvda  Southern  by 
building  the  "  Loop/^  doubtless  took  an  intelli- 
gent and  comprehensive  view  of  their  position, 
as  it  was  evident  from  tlie  drift  of  their  re- 
marks, that  the  constructicm  of  the  "  Looj)," 
was  not  deemed  advisable  for  their  interest  as 
a  project  by  itself^  and  was  only  urged  to  defeat 
the  Canada  Southern. 

The  value  and  importance  of  the  Canada 
Southern  Line  itself,  and  its  necessity  to  the 
other  great  lines  in  which  we  were  interested, 
alone  controlled  the  question  of  its  construc- 
tion. 

If  the  Creat  Western  Railway  Company  were 
warranted,  even  in  entertaining  the  idea  of  a 
^'Loop  Line,"  parallel  with  their  .own  railway, 
in  consideration  of  procuring  gi'ades  of  thirty- 
five  feet  i)er  mile,  but  by  which  they  would 
gain  nothing  substantially  in  distance,  while 
the  business  which  it  would  get  would  be  ju'ln- 
cipally  taken  from  their  own  main  line,  these 
other  great  interests,  both  east  and  west,  would 
certainly  be  warranted  in  building  the  Canada 
Southern,  by  which  they  would  save  from  forty- 
five  to  fifty-five  miles  in  distance,  and  procure 
grades  of  15  feet,  which  are  as  much  better 
than  those  of  the  ''  Loop,"  as  the  latter  are 
superior  to  those  of  their  own  main  line,  while 


^we  w 

1,. 
I  hue  \A 

•Trun 

uatio 

our  11 

I     Chi 

;  raihv 

|tho»e 

I     Of 

I  one  g 

l])owe 

•This  1 

Westc 

I     To 

!the  P 

alone, 

interei 


The 
jrailws 
[very  i 

[state  1 
^crease 
S500,( 
"  crea 
"  the  : 
^'  and 
cent,  i 


10 


13 

.     |we  will  lose  nothing  by  diversion,  and  have  a 
line  which  is  seven  miles  shorter  than  the  (irand 
X  ji     Trunk  and  "Loop"  Lines  between  the  Jnter- 
1         national  Bridge  and  their  final  divergence  from 

ntelli-     ^^^^*  ^^'^^  '^^''^^  ^**  Thomas. 

^ition     \     ^^^^^''^^^  i^  ^^o*  <^iily  ^  centering  point  for  the 

ir  re-   ^I'^^l^V'iy  lines   from  the   eastward,  but  also  of 

..r...  "     those  extending  to  the  westward. 

est  as  9     Of  the  railways  diverging  Avest  from  Chicago, 

^efeat  1^^*^  great  interest  is  under  the  same  controlling 
^])ower   that    manages   the   Michigan   CY^ntral. 

in'ida  '^^^^^  management  is  now  extended  to  the  Great 
the      AVestern  of  Canada. 

ested  T^  have  left  the  monopoly  of  the  traffic  across 

the  Peninsula  of  Ontario  under  that  control 
alone,  must  have  been  regretted  by  every  other 
interest  both  in  and  out  of  Canada. 


struc- 


were 
I  of  a 
Iway, 

lirt  V-  TRAFFIC. 

vould 

while  .The  managers  of  the  Great  Western,  whose 

nrin-  '"li^way    passes   through   a   country    occupied 

hose  ^  ^'^T  i^^iich  like  that  of  the  Canada  Southern, 

^j^lj  state  that  from   1865  to  18()9,  there  was  an  in- 

nada  '^i'^^^^  iii  the  value  of  their  through  traffic,  from 

.^j.^  '_  $500,000  to  Jii^l,200,000;  '^a  steady,  regular  in- 

:)cure  crease  which  is  going  on  still,  notwithstanding 

letter  '  *^^^  reduction  of  rates  and  fares  between  1805 

^j.^  "  and  1869,"  of  one  hundred  and  thirty -six  per 

hile  ^^^^'  i'^  fiv®  years ;  or,  an  average  of  twenty- 


•£• 


14 

seven  per  cent,  per  annum.  The  gross  traffic 
receipts  for  the  half  year  ending  31st  July, 
1870,  were  $2,044,500,  of  which  the  local  traffic 
was  45  per  cent,  of  the  whole. 

Taking  the  first  half  of  1870  as  a  basis,  the 
receipts  for  that  year  would  be  $4,000,000,  of 
which,  by  the  same  proportion,  $1,800,000 
would  be  derived  from  the  local,  and  $2,200,000 
from  the  through  business. 

Inere  being  a  ''steady  regular  increase"  be- 
tween 1805  and  18G9  of  27  per  cent,  pei  annum, 
it  is  a  low  estimate  to  assume,  that  by  the  time 
the  Canada  Southern  Railway  is  completed, 
(January  1st,  1873,)  the  business  of  the  Great 
Western  will  have  increased  at  least  25  per 
cent.,  (12^  per  cent,  per  annum,)  equal  to  an  ag- 
gregate amount  of  local  traffic  of  $2,250,000, 
I  and  of  through  traffic  of  $2,750,000. 

I  On  the  opening  of  the  Canada  Southern,  with 

I  its  further  development  of  the  large  agricultural 

products  for  export,  as  well  as  those  from  the 
lumber  and  mineral  oil  districts,  which  have 
heretofore  been  destitute  of  railway  and  other 
facilities  of  transport,  an  additional  local  busi- 
ness may  reasonably  be  expected  of  at  least  25 
per  ^ent.,  making  for  both  roads  $2,800,000  of 
which  the  Canada  Southern,  when  fairly  in  ope- 
ration, will,  it  is  estimated,  secure  at  least  two 
fifths,  or  $1,120,000,  with  an  increasing  pro- 
portion every  year  thereafter  in  its  favor. 
It  may  be  added  that  a  large  traffic  will  be 


15 


38  traffic 
Lst  July,   f 
!al  traffic 


lasis,  the  [ 
0,000,  of  I 
,800,000  I 
,200,000 

iase"  be- 
aiinuin,  J 
the  time  | 
mpleted,  * 
le  Great  j 
25  per  i 
io  an  ag-  ^^ 
250,000,   f 

I 

rii,  with 

cultural   K 

^om  the  I 

h  have    ; 

d  other 

al  busi- 

least  25  J 

D,000  of  1 

^  in  ope-   '■] 

iisi  two  J 

ng  pro- 

)r. 

will  be 


derived  from  the  existing  branch  railways,  from 
London,  from  St.  Catharines,  from  the  two  roads 
which  extend  from  the  International  Bridge, 
through  Niagara  Falls,  and  from  the  Hamilton 
branch  now  constructing,  all  of  which,  except 
the  London  branch,  terminate  on  Lake  Ontario, 
where  they  connect  with  the  steamers  running 
to  Toronto  and  through  the  Lake  and  the  St. 
Lawrence  to  Quebec,  and  to  all  ot  the  impor- 
tant intermediate  places. 

The  Hamilton  branch  will  give  us  a  direct 
communication  by  rail  with  'T'oronto,  and  all 
other  points  north  and  east  of  Hamilton  to  which 
railways  have  or  may  be  extended.  By  this 
branch  from  Hamilton  to  Caledonia,  thence  by 
the  Grand  Trunk  to  its  intersection  with  the 
Canada  Southern,  and  by  the  latter  to  the  Li- 
ternational  Bridge,  Buffalo  and  the  railways 
terminating  there  can  be  reached  in  about  the 
same  distance  ttom  Hamilton  as  by  the  Great 
Western,  thereby  giving  Hamilton  and  the 
country  tributary  thereto  a  competing  line  to 
and  from  the  East  as  well  as  the  West,  includ- 
ing the  Oil  Regions.  The  Hamilton  branch  is 
27  miles  in  length  from  Hamilton  to  its  inter- 
section with  the  Canada  Southern  Railway 
581  miles  west  of  the  International  Bridge, 
which  latter  point  is  423  miles  from  Chicago, 
bringing  Chicago  within  450  miles  of  Hamilton, 
which  is  at  the  head  of  navigation  on  Lake 
Ontario. 


16 


The  nearest  point  from  Chicago  at  which 
Lake  Ontario  can  be  reached  by  rail  along  the 
south  shore  of  Lake  Erie,  is  over  560  miles. 

A  large  through  traffic  over  the  Oanachi  South- 
ern, will  be  derived  from  the  central  and  north- 
ern portions  of  Michigan,  tributary  to  the  St. 
Clair  branch.  The  rich  and  thickly  populated 
agricultural  regions  of  central  Michigan,  to- 
gether with  the  vast  quantity  of  pine  from  the 
northern  i)ortion  of  the  State,  (already  pene- 
trated by  railways,)  can  find  no  outlet  to  an 
eastern  market  so  advantageous  as  over  the  St. 
Clair  branch. 

In  addition  to  this,  the  St.  Clair  branch  will 
obtain  from  the  Peninsula  and  Midland,  and 
the  Michigan  Air-Line  Railways,  not  only  the 
through  business  which  those  lines  will  derive 
from  Chicago,  but  also  their  own  local  business, 
and  very  much  of  that  which  will  be  carried 
by  the  other  lines,  which  they  will  intercept, 
and  to  which  this  branch  can  ofi*er  a  shorter 
and  cheaper  line  eastward,  than  can  be  ob- 
tained by  any  other. 

From  these  sources,  it  is  believed  there  will 
be  derived  an  amount  at  least  equal  to  that 
above  estimated  for  the  local  traffic  in  Canada, 
or  $1,120,000. 

The  following  extract,  taken  from  the  Report 
ot  the  Convention,  held  at  Saginaw,  in  18()9,  of 
the  friends  of  a  line  to  connect  with  the  North- 
ern Pacific  Railroad,  from  the  St.  Clair  River 


St. 


la, 


17 

via  the  Straits  of  Mackinaw,  will  show  the 
value  of  the  products  of  the  northern  portion 
of  Michigan  which  will  he  tributary  to  the 
Canada  Southern  Railway : 

Copper   and   Iron   from    Lake   Su- 

,  1^^™^^         •         •         .         .  .  $6,900,000 

Lumber,    Timber,     Shingles,    Lath, 
Staves,  etc.,  .         .         .         ,'  28,534,294 

r,r*^ 1,111,380 

i^^\ 651,000 

^^^®*^^*' 144,090 


Total, 


$39,340,704 


The  Northern  Pacific  will  be  extended  east- 
wardly  either  by  that  or  some  other  Company 
through  the  great  mineral  and  lumber  regions 
along  the  south  shore  of  Lake  Superior,  to  the 
Straits  of  Mackinaw,  where  it  will  connect  with 
railways  extending  to  St.  Clair. 

The  distance  by  the  Canada  Southern  and  the 
Straits,  from  Buffalo  to  Duluth  will  be  over 
100  miles  less  than  via  the  south  shore  of  Lake 
Erie  and  Chicago.  From  all  intermediate  points 
east  of  Duluth  the  distance  saved  will  be  much 
greater.  This  is  an  important  feature  in  con- 
nection with  the  Canada  Southern  Railway,  and 
must  ultimately  add  largely  to  its  traffic. 

From  the  main  line  via  Amherstburg  our 
connection  with  Chicago  will  be  by  the  Chicago 


■I 


18 

and  Canada  Southern  Railway,  with  wliich  we 
are  in  close  alliance,  forniino-  tooether  the  most 
direct  and  level  railway  attainable  between 
Chicago  and  Buif'alo. 

From  the  local  business  of  this  important 
line,  the  through  traffic  from  Chicago,  and  from 
lines  west  of  Chicago,  an  amount  equal  to  that 
now  derived  by  the  Great  Western  from  the 
Michigan  Central,  (increased  by  the  twenty-five 
per  cent,  before  stated,)  viz.,  $2,750,000,  may 
certainly  be  relied  upon,  as  soon  as  the  facilities 
for  transportation  are  afforded.  This  amount, 
together  with  the  estimated  local  business  of 
Canada,  $1,120,000,  and  the  through  trafl&c  from 
Central  and  Northern  Michigan,  $1,120,000, 
gives  an  aggregatt:  of  $5,000,000. 

In  the  foregoing  estimate  the  business  that 
centers  at  the  Cities  of  Detroit  and  Toledo,  from 
both  of  which  points  the  Canada  Southern  will 
furnish  the  shortest  and  much  the  best  route 
east,  has  not  been  taken  into  the  account. 

The  best  idea  of  the  through  business  which 
the  Canada  Southern  Railway  may  expect  can 
be  derived  from  a  statement  of  the  immense 
area,  population,  wealth,  resources  and  progress 
of  the  States  lying  west  of  its  western  termini. 
These  States  are  Michigan,  Indiana,  Illinois, 
Missouri,  Kansas,  Nebraska,  Iowa,  Wisconsin 
and  Minnesota.  They  contain  an  area  of  5()0,793 
square  miles,  and  had  a  population  in  1870,  of 
10,280,371.     The  following  statement  will  show 


19 

the  area  of  each  State,  the  population,  and  the 
number  of  miles  of  railway  in  each,  in  1H()0 
and  1870. 

Ar(>n,  Population,  Populiitlnn,  MlIcH  of         Miles  of 

H<liinrp  MilcK.  1800.  1870.  K.R.  1860.      R.R.  1870. 

MicliiVan...  50,451  74U,1I8  1,184,290  779  1,733 

Indiana  ....  33,S09  1,350,428  1,073,040  2,103  3,177 

Illinois 55,400  1,711,951  2,539,078  2,799  4,823 

Missouri 05,350  1,182,012  1,715,000  817  2,040 

Kansas 81,310  107,200  302,871      1,401 

Nebraska...  75,995  28,841  123,000     578 

lowu 55,030  094.913  1,191,802  055  2,550 

Minnesota  ..   83,521  172,023  435,511      972 

Wiseonsin  .1   53,921  775,881  1,055,107  905  1,350 

500,793     0,772,308     10,280,371     8,118     18,024 

The  population  of  these  States  increased  in 
the  period  of  10  years,  3,508,003,  over  50  per 
cent.  The  railroad  mileage  in  the  same  time 
increased  10,500  miles,  or  nearly  130  per  cent. 
At  a  similar  rate  of  increase,  these  States  will 
have  in  ten  years  from  this  time,  15,000,000 
inhabitants,  and  40,000  miles  of  railway.  But 
this  is  by  no  means  all.  New  States  are  speedily 
forming  out  of  Territories  already  containing 
large  populations,  while  the  railroads  across 
the  continent  will  bring  to  all  the  eastern 
lines  an  immense  traffic  from  the  interior  and 
from  the  Pacific  Coast.  With  that  of  the  Ter- 
ritories, the  increase  of  population  in  the  West 
cannot  be  less  than  600,000  annually.  The 
yearly  increase  alone  is  adequate  to  the  sup- 
port of  a  first-class  road  to  bear  their  products 
to  market. 


20 


Tlie  States  named  in  the  precedin<^  table  pro- 
duced last  year  4()(),00(),0()()  bushels  of  corn,  and 
150,000,000  bushels  of  wheat.  The  toiniaoe  ol 
this  vast  quantity  exceeds  18,000,000  tons.  But 
this  tonnage,  great  as  it  is,  is  but  a  tithe  of 
what  Avill  be  produced  with  their  increased 
population  and  under  the  stimulus  of  cheap 
transportation.  The  transportation  of  stock, 
and  animal  food  of  various  kinds,  constitutes  a 
larger  source  of  income  of  our  through  lines 
than  that  of  grain.  This  kind  of  traffic  is 
increasing  much  more  ra])idiy  than  any  other. 
The  Eastern  States  are  becoming  more  de- 
pendent every  year  upon  the  far  West  for  their 
supply  of  aninuil  food.  Stock  can  be  raised 
and  transported  at  a  profit  far  beyond  the 
profitable  limit  for  grains  on  account  of  the 
greater  value  of  the  former. 

But  the  rapid  increase  of  the  tomiage  of  our 
railroads  is  much  more  wonderful  than  the  in- 
crease in  population. 

The  tonnage  in  18G9  of  the  five  great  roads 
coming  into  Chicago  from  the  West;  the 
Chicago  and  North  Western,  the  Chicago  and 
Rock  Island,  the  Chicago,  Burlington  and 
Quincy,  the  Chicago  and  Alton,  and  the  Illinois 
Central,  amounted  to  6,767,209  tons.  In  1860 
the  tonnage  of  these  roads  did  not  exceed 
1,500,000.  The  increase  in  10  years  equaled 
5,267,209  or  350  per  cent.,  or  an  average  in- 
crease of  35  per  cent.,  yearly. 


t 

rl 

v| 

a| 

I 

ai 


21 


in- 


The  tomijift'e  of  the  thrcu'  i»i'eat  lines  tVoiu 
the  Went  termiiiatiiii''  on  the  sea-board  ;  the 
New  York  Centi'al,  the  Krie,  and  the  l*ennsyl- 
vania  Raih'oads,  inci'eased  from  l(S5i)  to  I  SOD, 
a  period  of  ten  years,  from  2,873,031  tons  to 
12,907,080  tons,  or  an  average  of  35  per  cent., 
aninially.  While  this  jiercenta^e  cannot  he 
maintained  tlie  actual  annual  increase  will  be 
much  fijreater. 

The  folio wini»'  statement  will  show  the  ton- 
ua<ie  of  the  five  roads  entering  Chicago  from 
the  West,  for  a  period  of  five  years,  ending 
with  1869. 


1865. 
18(36. 
18f)7. 
1808. 
1800. 


Illinois  Cen- 
tral. 


1,022,024 
1,0.34,940 
1,153,175 
1,439  075 
1,001,972 


Cliion(;i>  mi'l 
Alton. 


380,197 
511,012 
(i.-^O.SOO 
915,082 
1,076,678 


CliiciiffO,  Uo<tk 

Isliuid  anil 

I'acilic. 

441,510 
472,557 

459,980 
054,435 
840,887 


Cliicairo,  Bur- 

lin);loii  and 

yuiucy. 

809,(574 
737,511 
81:1,883 
937,489 
1,029,740 


Chii'nK"  '""1 

Norlli  WcHt- 

orn. 

950,584 
1.137,516 
1.72f;.919 
1.982,429 
2,211,826 


Such  rates  of  increase  show  how  much  more 
rapidly  the  products  and  wealth  of  the  country 
increase  than  its  population.  Such  evidence 
as  this,  drawn  from  the  reports  of  railroad  com- 
panies, show  the  absolute  necessity  of  constantly 
increased  provision  for  transporting  the  ])ro- 
ducts  of  the  interior  to  the  sea-board,  and  that 
no  provision  that  is  likely  to  be  made  will  equal 
the  demand. 

While  the  progress  of  railroads  has  been  so 
rapid  in  the  West,  no  great  independent  outlets 
have  been  opened  for  them  to  the  eastern  mar- 
ket during  the  last  10  years. 


•>->. 


Mr.  E.  11.  Walker,  Statistician  for  the  New 
York  Produce  Exchange,  has  kindly  furnished 
the  annexed  interesting  official  statement,  show- 
ing the  average  annual  cost  of  transportation 
of  wheat  and  corn  by  water,  from  Chicago  to 
NewYork, including  handling  and  other  charges, 
for  the  past  fourteen  years.  This  has  been  in 
round  numbers,  28  cents  per  bushel  for  wheat, 
both  by  Oswego  and  Buffalo,  and  foj"  the  year 
1870,  was  22  cents  per  bushel.  Corn  being  car- 
ried at  about  the  same  rate  for  the  same  weight. 

The  toll  on  the  Erie  Canal  for  the  last  year 
was  3  cents  per  bushel  Avith  freight  exeeption- 
ably  low.  If  the  Erie  Canal  is  ever  made  free 
from  toll,  it  will  only  reduce  the  cost  of  trans- 
portation by  water  to  this  extent.  This  is  the 
only  reduction  possible,  short  of  an  enlargement 
of  the  canal. 

Mr.  Mc Alpine  demonstrates  that  by  a  low 
grade  line,  grain  can  be  carried  from  Chicago 
to  New  York  for  from  20  to  22  cents  per  bushel 
of  6( )  pounds,  taking  as  a  basis,  the  roads  with 
iron  rails,  and  with  a  road-bed  as  ordinarilv 
used. 

With  a  perfect  road-bed  and  steel  rails,  a 
saving  of  15  per  cent,  as  compared  with  his 
estimate,  may  be  assumed. 

The  practice  of  purchasing  grain  at  the  sta- 
tions upon  the  roads  west  of  Chicago,  is  in- 
creasing among  grain  dealers.  This  saves  all 
charges  at  Chicago  and  Buffiilo.  These  transfers 


oo 
Ao 


and  other  charges  cannot  be  avoided  if  brought 
by  water. 

Another  consideration  of  no  small  importance, 
is  the  shorter  time  of  transit  and  the  better  con- 
dition in  which  the  grain  reaches  market. 

A  freight  train  of  40  cars,  with  14,000  bushels 
of  wheat,  which  can  always  be  relied  upon, 
from  Chicago  to  New  York,  (1)25  miles,)  over 
a  railway  with  a  good  road-bed,  steel  rails, 
and  with  grades  not  exceeding  15  feet  per  mile, 
and  a  return  with  one-fourth  (100  tons)  the 
weight,  (which  is  about  the  proportion  of  back 
freight,)  can  be  taken  at  a  cost  of  not  to 
exceed  $1.00  per  mile  run,  or  for  1,850 
miles, $1,850 

Terminal,  and  other  charges,  .     .     .         4(38 


$Z,cil8 


Total,      .     .     . 

This  includes  the  cost  of  working 
and  maintaining  the  railway  and 
equii)ment,  together  with  every 
other  expense,  except  interest  on 
capital. 

14,000  bushels  of  wheat  at  17 
cts.  per  bushel,  is      .     .     .     $2,380 

100  tons  mixed  freigJit 
back,  at  75  cents  per  hun- 
dred, is 1,500 

3,880 

Leaving  a  net  profit  of $1,502 

or  over  40  per  cent,  upon  the  gross  earnings. 


24 


A  »}2-ton  locomotive  will  transport  over  such 
a  road  OO  cars,  with  21,000  bushels  of  wheat, 
with  a  return  freight  of  one-quarter  the  above 
(say  150  tons),  at  a  cost  of  $1.25  per  mile  run; 
this  would  reduce  the  cost  of  transporting  the 
wheat  to  14  cents  per  bushel,  and  the  back 
freight  to  00  cents  per  hundred. 

The  traffic  of  existing  railroads  has  been 
constantly  gaining  over  water  routes,  between 
Chicago  and  New  York.  The  reduction  in  cost 
that  can  be  made  on  this  line  will  not  only  add 
to  its  tonnage  from  ordinary  sources,  but  enable 
it  to  draw  to  an  unlimited  extent  upon  that 
which  has  heretofore  gone  by  water. 

Over  such  a  railway  as  has  been  described, 
and  which  is  entirely  practicable,  produce  from 
Chicago  and  stations  west,  can  certainly  be 
transported  cheaper  to  New  York  than  by  any 
existing  water  communication,  and  it  is  be- 
lieved, cheaper  than  by  any  improved,  or  en- 
larged navigation  practicable. 

In  connection  with  the  transportation  of 
grain  through  the  St.  Lawrence,  which  is  now 
of  considerable  magnitude  and  rapidly  increas- 
ing, the  line  to  Hamilton  becomes  particularly 
important.  The  distance  from  Chicago  to  Lake 
Ontario,  by  water,  is  not  only  long  and  circuit- 
ous, but  involves  passing  through  the  Welland 
Canal,  the  locks  of  which  are  only  26^  by  150 
feet  in  the  chamber.  The  locks  between  Lake 
Ontario  and  Montreal  are  45  by  200  feet,  the 


n1 
5] 
til 
2( 
Rl 

c'i 

n 
e: 
avi 


25 


any 
be- 
en- 


lattei'  admittinpj  vessels  or  barges  of  very 
much  greater  capacity — sea-going  ships.  Of 
54,000,000  bushels  of  grain  destined  through 
the  Welland  Canal,  10,000,000  bushels,  or  nearly 
20  per  cent,  were  lightered  over  the  Welland 
Railway,  which  was  built  by  the  side  of  the 
canal  for  that  purpose.  Taking  grain  by  all 
rail  direct  to  Hamilton,  this  lightering  and 
expense  of  passing  the  Welland  Canal  will  be 
avoided,  and  can  there  either  be  put  into  a  class 
of  ships  safe  for  a  sea  voyage,  or  into  large 
barges,  for  either  Oswego,  Montreal  or  Quebec, 
at  which  two  latter  places  it  can  be  sent  abroad 
by  a  still  larger  class  of  ships.  Grain  can  be 
taken  from  Chicago  to  the  head  of  Lake  Ontario 
at  Hamilton,  450  miles,  and  transferred  into 
vessels  or  barges  through  an  elevator  for  8 
cents  per  bushel.  Airing  grain  occasionally, 
through  an  elevator,  on  a  long  voyage,  is 
worth  to  the  grain  all  it  costs.  The  transpor- 
tation of  grain  by  this  route  will  doubtless 
become  important,  and  add  largely  to  the 
traffic  of  our  railway. 

The  receipts  of  the  Lake  Shore  and  Michigan 
Southern  Railway  in  1870,  were  over  $13,000,- 
000.  From  the  1st  of  January  to  the  1st  Sep- 
tember of  this  year  (4871),  the  increased  re- 
ceipts, as  compared  with  those  of  the  same  time 
last  year,  were  over  $900,000,  and  but  for  the 
want  of  capacity  to  do  the  business  offered, 
would  have  been  greater.      If  more  facilities 


"f|WW,'  T^i.-^J^'V  '«■*  '■ 


26 

arc  necessary  /lo?/^  to  relieve  this  blockade,  it 
will  be  imperatively  necessary,  upon  the  com- 
pletion of  the  additional  railways,  now  in  course 
of  construction  from  the  Detroit  and  St.  Clair 
Rivers  west,  and  from  Buffalo  east. 

The  Canada  Southern  will  have  less  than  half 
the  capital  of  tlie  Great  Western  with  its  ''Loop," 
and  but  half  the  capital,  which  belongs  to  that 
portion  of  the  Lake  Shore  Railway,  which  is 
within  a  correspondino;  distance  from  Chicago. 
With  the  advantages  of  distance,  grades  and 
alignment  largely  in  its  favor,  it  will  start  off 
with  a  steel  rail  .and  new  equipment  of  the  most 
approved  modern  kind,  whilst  the  Lake  Shore 
and  Great  Western  Railways,  to  avail  of  similar 
track  and  equipment,  must  add  as  much  to  their 
capital,  as  will  nearly  double  track  the  Canada 
Southern. 

The  low  grades  and  perfect  alignment  of  tKe 
Canada  Southern  Railway  will  admit  transpor- 
tation of  passengers  at  the  highest  speed,  aiul 
under  the  conditions  of  the  most  perfect  safety. 
It  will  have  the  same  economical  advantages 
in  the  transportation  of  passengers  as  it  will 
have  in  that  of  freight. 

With  its  ability  for  cheap  transportation,  and 
all  its  other  advantages  combined,  it  is  difficult 
to  estimate  the  traffic  which  must  necessarily 
pass  over  the  Canada  Southern  Railway,  the 
most  favorable  link  in  that  line  of  transit,  over 
which  so  important  a  portion  of  tlie  business  of 
the  continent  naturally  passes. 


jckade,  it 

the  com- 

I  in  course 

I  St.  Clair 

than  half 
3S  "Loop/' 
gs  to  that 

which  is 
I  Chicago, 
rades  and 
1  start  off 
'  the  most 
ike  Shore 
of  similar 
h  to  their 
le  Canada 

int  of  tKe 
transpor- 
peed,  and 
ct  safety. 
Ivantages 
as  it  will 

ition,  and 
s  difficult 
ecessarily 
wa}',  the 
nsit,  over 
usiness  of 


27 


ASSP]TS. 


Capital  stock, .f;  10,000,000 

Capital  stock  subscribed,      .     .     .       2,000,000 

First  mortgage,  7  per  cent,  sinking 
fund  bonds 1),000,000 

The  cost  of  the  Railway  equipment 
and  appurtenances  complete,  as 
estimated  by  the  Chief  Engineer, 
is 14,500,000 

To  this  must  be  added  for  commis- 
sions, office  and  legal  expenses, 
and  contingencies, 1,500,000 


Total 


.  $16,000,000 


Based  on  the  payment  of  one-half  in  the 
capital  stock  of  the  Company  ($8,000,000)  and 
the  remainder  in  first  mortgage  bonds  of  the 
Company  ($8,000;000). 

This  will  leave  two  milHons  of  the  stock  and 
one  million  of  the  bonds  in  the  hands  of  the 
Company. 

Sufficient  of  the  securities  (equal  amounts  of 
stock  and  bonds)  have  already  been  placed, 
to  provide  all  the  means  necessary  to  procure 
the  right  of  way,  fence,  grade,  bridge,  and 
prepare  the  road-bed  upon  the  whole  line  of 
railway,  including  the  Branch,  for  the  super- 
structure, and  to  furnish  the  rails  for,  and 
complete  fifty  miles  of  the  same. 


_<^-,V';;'  _;vy^-'T_  '  v(V'»  '.f^s^i — rf!*r-^.-\r^^ 


28 

The  estimated  annual  gross  re- 
ceipts from  traffic,  as  heretofore 
stated,  are 


^5,000,000 


The  working  expenses  should  not 
exceed  55  per  cent,  of  the  gross 
earnings,  even  at  the  minimum 
^^*^s,  or 2,750,000 

Leaving  of  net  revenue,     .     .     |2,250,000 

The  annual  interest  on  the  bonds  is 
|()30,()00,  and  the  contributions 
to  the  Sinking  fund  $82,000;  this 
provides  for  the  payment  of  the 
interest  and  debt  at  maturity, 
^^king 712,000 


Leaving,  net, $1,538,000 

which  is  equal  to  19  per  cent,  on  $8,000,000  of 
stock. 

The  hne  is  permanently  located,  right  of  way 
nearly  all  secured  and  paid  for,  all  the  grading 
and  bridging,  and  most  of  the  ties  required  are 
under  contract  and  under  way.  The  grading 
and  bridging  will  be  completed,  and  the  road- 
bed of  the  whole  line,  including  the  Branch, 
made  ready  for  the  superstructure  by  the  open- 
ing of  next  Spring.  Rails  for  05  miles  (six 
thousand  ^ve  hundred  tons)  have  been  pur- 
chased to  be  delivered  this  fall. 


"-TTf  ■■      '!■■ 


■WT  r«r"  7"  •"ST"-'*;" 


29 

It  is  the  design  of  the  Company  to  have  the 
whole  line  of  Railway  completed,  equipped,  and 
ready  for  operation,   by  the  1st  of  January, 


A  copy  of  the  Bond  and  Mortgage  is  hereto 
appended. 

For  the  Board, 

M.  COURTRIGHT, 

President. 
New  York,  September,  1871. 


,  *-    '/  ■        T^r'f -»— ••f-.i— --r.',',--|*T      ^••jm,mmfM._.         «^  ^i"*"Mi    'f 


T 


A 

u 
til 

R 
R 

oil 

(01 

is 

M. 

tic 

Sti 
Cu 


Th 


Lei 


REPORT  OF  CHIEF  ENGINEER. 


To    THE    ]*]IKSII)ENT     AKJ)    DlUECTOKS    OF   THE    CaNAUA 

Southern  Railway  Company  : 

Gentlemen:  Your  road  is  now  perinanontly  located. 
A  line  has  been  obtained  with  grades  not  exceeding 
15  feet  to  the  mile,  and  3  degree  curves,  being  within 
the  limits  of  my  instructions.  The  distance  from  the 
west  end  of  the  International  Bridge,  (over  the  Niagara 
River  at  Butfalo,)  to  Amherstbnrg,  (on  the  Detroit 
River,  and  near  its  mouth,)  is  1^28.83  miles. 

The  St.  Clair  Branch,  from  the  point  of  its  diverg- 
ence from  the  main  line,  (near  St.  Thomas,)  to  Moore, 
(on  the  St.  Clair  River,  opposite  St.  Clair,  Mii-higan,) 
is  61.89  miles  ;  and  from  the  International  Bridge  to 
Moore,  the  distance  is  184.2!)  miles. 

The  alignment  of  the  main  line,  from  the  Interna- 
tional Bridge  to  Amherstbnrg,  is  as  follows  : 

Straight  line 218.7G  miles. 

<^"^^^s3° 0.95  miles 

U  QO 

^ 2.00     " 

"        1° 4.72     " 

i - 2.40     " 

10.07      « 

Making  the  total  length  of  the  main  line....   228.83  miles. 

The  alignment  of  the  St.  Clair  Branch  is  as 
follows  : 

Length  of  straight  line 60.98  miles 

"         "  curves  2° o.91     " 

61.89       ''  ' 

Making  the  total  length  of  the  main  line  and 

hraneh oon  to      -i 

-   5i90.72  miles. 


32 

The  total  ien^'th  of  straight  line,  (on  the  main 

lino  and  branch,)  is 279.74  miles. 

The  total  length  of  curvature 10.98      " 


290.72  miles. 


^The  |)riiicii)al  tangents  on  the  main  line  are,  one  of 
17.;}4,  one  of  28,  one  of  51.18,  and  one  of  52.15  miles, 
and  on  the  St.  Clair  branch  one  of  54.48  miles. 

The  length  of  the  different  gradients  on  the  main  line 
are  as  follows  : 

Level  and  under  5  feet  per  mile 121.20  miles. 

Going  East,  ascending  5  to  10  feet  per  mile 14.35 

"         "  "         10  to  15     «     "       "    ....  19.80 

"        "  "  of    15     »     ''      "    ....  14.83 

Going  West,  ascending  5  to  10    "    "      "    21.77 

"         10  to  15     "     "       "    6.67 

"  of    15     "     "       "    30.21 


(( 
(( 
« 


228.83  miles. 


And  on  the  St.  Clair  Branch  : 

Level,  and  under  5  feet  per  mile 

Going  East,  ascending  5  to  10  feet  per  mile. 
"         "  "         10  to  15     "     "       « 

"        "  "  of    15     "     "       " 

Going  West,ascending  10  to  15     "     "       " 
"  of    15 


(( 


(( 


(( 


-.42.09  miles. 
--  5.25  " 
..  3.31  » 
--  4.47  " 
.-  0.85  " 
-.  5.92      " 

61.89  milei?. 

Of  the  15  feet  grades,  there  arc  14.83  miles  encoun- 
tered on  the  main  line  going  east,  and  30.21  miley 
going  west ;  the  greatest  length  of  which,  however,  in 
any  one  place,  going  east,  i.^  2.55  miles,  and  going 
west  is  3.48  miles. 


33 


A  line  was  run  from  a  point  near  Sandwich,  on  the 
Detroit  River,  (opposite  Detroit,  Michigan,)  for  a  dis- 
tance of  15.2  miles,  to  the  main  line.  It  is  nearly 
level  and  can  be  cheaply  built.  But  as  Detroit  can 
be  reached  via  the  St.  (Uair  Branch,  with  less  distance 
and  equally  lavorable  grades,  and  to  better  advantage 
than  by  the  way  of  Sandwich,  it  will  i)robably  be 
deemed  inexpedient  to  build  the  road  to  Sandwich,  at 
least  for  the  present. 

The  distance  from  the  terminus,  of  the  St.  Clair 
Branch,  at  Moore,  across  the  river  to  St.  Clair,  is  2,011 
feet,  or  0.38  miles,  with  a  dei)th  of  water  from  20  to 
;{3  feet,  with  the  excei)tion  of  the  main  channel,  which 
is  500  or  GOO  feet  in  width,  with  a  dei)th  of  water 
averaging  43  feet,  and  a  maximum  of  45  feet,  with  a 
hard  blue  clay  on  the  bottom,  tor  the  whole  width  of 
the  river.  This  crossing  is  favorable,  not  only  for  a 
l)ermanent  bridge,  but  also  for  a  temi)orary  ferry,  and 
is  unobstructed  by  ice  during  the  winter. 

The  distance  from  the  terminus  of  the  main  line  at 
Amherstburg,  across  the  river  to  the  main  shore  on  the 
American  side,  is  3.48  miles.  The  eastern  or  main 
channel  of  the  river,  is  about  3,500  feet  in  width,  vary- 
ing from  10  to  22  feet  in  depth,  with  an  extreme  depth 
of  22  feet,  and  a  rock  bottom  throughout. 

There  are  two  other  comparatively  unimportant 
channels  to  bridge,  on  the  Michigan  side  of  the  river, 
together  nearly  3,000  feet  in  width,  where  the  average 
depth  does  not  exceed  15  feet.  These  two  latter 
channels,  and  also  a  part  of  the  main  channel,  can 
readily  be  bridged,  leaving  a  ferry  of  only  3,000  feet. 
This  crossing  is  also  favorable  lor  a  ferr}^,  being  unob- 
structed bv  ice  during  the  winter. 


34 


The  crossings,  both  at  Ainh(M'st))urg  and  St.  Clair, 
are  iavorable  for  britlgiii;:',  and  would  be  entirely  nn- 
objectionable  on  the  ground  of  iutei'lering  with  the 
navigation,  if  provided  with  suitable  draws. 

The  distances  between  the  objective  points  are  as 
foUows  : 


Ist.  Between  Buifalo  and  Toledo,  via  the  main  line  to  tlic 
Detroit  Branch  of  the  Lake  Shore  and  Michigan  Southern 
Railway,  to  wit : 

The   International   Bridge   over  the    Niagara 

River 0.67  miles. 

From   the  International   Bridge   to   Amlicrst- 

burg. 228.83     " 

From   Amherstburg  to  the  main  shore  on  the 

American   side 3.48      " 

Thence  to  Toledo 38.02      " 

Total  distance  from  Buffalo  to  Toledo 271.00  miles. 

In  estimating  the  distance  from  the  point  where  our 
line  would  intersect  the  Detroit  Branch  of  the  L.  S. 
and  M.  S.  Railway  to  Toledo,  I  do  not  calculate  the 
distance  to  the  depot  in  Toledo,  but  to  a  point  where 
the  roads  leading  into  Toledo  would  naturally  inter- 
sect, and  which  would  add  nothing  to  their  length. 


2d.  From  Buffalo  via  tlie  St.  Chiir  Branch  to  Detroit : 


Buffalo  to  St.  Clair 

St.  Clair  to  Detroit  via  New  Baitunore 


.184.29  miles. 
..  42.00     " 

22G.29  miles. 


35 


Tn  calciihiling  Iho  (lislniicc  IVom  St.  Clair  (o  Detroil, 
it  is  not  tukcn  to  tlic  liviM-,  but  to  tho  point  of  inter- 
section with  the  Detroit  and  Milwaukee  K.  li.  and  tlie 
Detroit  Bran<;h  of  the  Lake  Shore  and  Michigan  South- 
ern Railway,  and  which  is  convenient  for  the  business 
of  Detroit,  and  at  the  same  time  avoids  the  long  cir- 
cuit into  and  out  of  the  city  and  saves  a  number  of 
miles  of  distance  in  passing  on  to  Chicago,  by  any  of 
the  roads  leading  to  the  hitter. 

The  maximum  grades  on  the  proposed  "  Loop  Line" 
are  ;55  feet  to  the  mile,  and  with  greater  curvature 
than  on  tlie  Canada  Southern  Railway. 

Tn  justice  to  the  Chief  Engineer  of  the  G.  W.  Loop 
Line  and  his  associates,  it  is  jH-oper  to  say,  that  these 
grades  and  this  (curvature  were  nuavoidablc  ;  as  b}^ 
the  act  of  J\arl lament,  granting  the  right  to  build  the 
road,  they  were  obliged  to  locate  it  through  the  differ- 
ent villages  along  the  route. 

The  maximum  grades  on  the  Grand  Trunk  Railway, 
between  the  International  Bridge  and  Canlield,  over 
which  it  is  proposed  to  pass  the  traflic  of  the  "  Loop 
Line,"  are  at  least  as  great  as  those  of  the  "  Loop." 


The  distances  from  Buffalo  to  Chicago,  (the  principal 
objective  point,)  starting  from  the  natural  point  of  in- 
tersection with  the  New  York  Central,  the  Erie  and 
other  railways  at  Buffalo,  (viz. :  3?  miles  east  of  the 
Buffalo  depot,  and  5  miles  from  the  west  end  of  the 
International  Bridge,)  are  as  follows : 


36 

1st.  By  the  Canada  Southcia  main  line,  and  the 

proposed  Chit^ago  and  Canada  Sonthern    m,l«h. 
KfiJlways,  is 487 

2d.  By  the  Canada  Southern  and  the  Chicago 
and  Canada  Soutliern  Railways  to  near 
Adrian  and  the  Michigan  Southern,    .     .     491      I       ^^ 

3d.  By  the  St.  Clair  branch  of  the  Canada  South- 
ern, and  the  Michigan  Air-Line  Railways,     497 

4th.  By  the  St.  Clair  branch  of  the  Canada  South- 
ern, the  ^lichigan  :Midland,  and  the  Penin- 
sula Railways,    .     , 505 

5th.  B}'  the  Grand  Trunk,  the  Great  Western  l 

audits    "Loop  Line"  nnd  the  Michigan 
Central  Railways, 520 

Gth.  By  the  existing  line  of  the  Great  Western 
and  the  Michigan  Central  Railways,  start- 
ing at  an  e(pial  distance  with  the  other 
lines  from  Rochester, 520 

7th.   By  tlie  Lake  Shore  and  Michigan  Southern 

Railways,  via  the  Goshen  branch,      .     .     532 

8th.  By  the  Lake  Shore  and  ;^^ichigan  Southern, 

via  the  old  line, 542 

The  distance  from  the  intersection  at  Bufitilo,  by 

the  Lake  Shore  Railway,  to  Toledo,  is    .     299 

By  the  Canada  Southern  and  the  Detroit  branch 

of  the  Lake  Shore  to  Toledo,  is,   ...     .     276 

S;'.  Clair,  in  Michigan,  is  the  same  distance  from 
Bnffalo,  by  the  Canada  Southern  as  Cleveland  is  by  the 
Lake  Shore  ;  and  Lansing,  (the  capital  of  the  State  of 
Michigan,)  is  the  same  distance  from  Buffalo  as  Toledo. 

In  addition  to  the  low  grades  which  have  been  es- 
tablished  upon  the  Canada  Southern  Railway,   and 


37 


MlLQH. 

487 

494 
497 

505 

520 


520 


299 


276 


the  slight  curvature,  other  essential  advantages  have 
been  gained,  which  add  to  the  safety  and  value  of 
the  road,  viz.  : 

First. — There  are  no  curves  on  the  road,  which  do 
not  have  tangents  of  at  least  1,000  feet  between  them, 
thereby  allowing  trains  of  the  usual  length  to  straighten, 
before  entering  upon  another  curve. 

Second. — Every  bridge  upon  the  road,  is  approached 
by  a  tangent  of  not  less  than  1,000  feet  in  length,  and 
in  nearly  all  cases  of  much  greater  length.  This  is  a 
very  essential  feature,  as  it  lessens  the  strain  on  the 
structures,  and  reduces  the  liability  of  engines,  or  cars 
to  leave  the  track,  on  or  near  the  bridges. 

lliird. — The  maximum  grades  are  confined  to  the 
tangents.  Curvature  and  grades  seldom  occur  at  the 
same  place,  and  never  where  the  resistance  of  the  two 
combined,  exceeds  the  effect  of  a  grade  of  15  feet  per 
mile  on  a  straight  line. 

Fourth. — The  aggregate  length  of  permanent  bridges 
will  not  ultimately  exceed  1,300  feet,  or  one-fourth  of 
a  mile,  for  the  entire  length  of  the  main  line  and 
branch. 

The  working  divisions  of  your  road  are  determined 
by  the  location,  and  are  very  favorable  for  working  it 
economically  ;  that  is,  St.  Thomas  being  central  on 
the  main  line  and  also  at  the  eastern  terminus  of  the 
St.  Clair  branch,  by  locating  the  main  shops  for  con- 
struction and  repairs  at  St.  Thomas,  every  locomotive 
making  regular   trips  over  the   road,    either  on  the 


38 


Eastern,  Western,  or  rft.  Clair  Divisions,  will  neces- 
sarily come  to  these  shops  every  twenty-four  hours, 
and  all  cars  passing  over  the  main  line  or  branch,  will 
also  be  here  examined  and  repaired  if  required. 

Locomotives  would  easily  make  the  trip  over  the 
Eastern  and  Western  divisions  daily,  and  a  round  trip 
each  day  on  the  St.  Clair  division,  thereby  economiz- 
ing power  to  the  greatest  degree.  Small  shops  in 
connection  with  the  reipiired  engiixC  houses  at  each 
end  of  the  main  line,  and  at  Moore,  would  be  the  only 
shops  in  addition  to  the  main  one  at  St.  Thomas,  that 
would  be  required. 

My  estimate  of  the  entire  cost  of  the  road,  with  a 
suitable  allowance  for  contingencies  and  superintend- 
ence, (heretofore  submitted  in  detail,)  amounts  to 
$14,500,000.  In  this  estimate  is  included,  1st:  The 
cost  of  the  right  of  way,  90  feet  in  width,  as  provided 
for  in  the  Railway  Act,  together  with  the  extra  widths 
that  may  be  required  for  deep  cuttings,  or  high  em- 
bankments, and  all  the  necessarv  grounds  for  railwav 

'  */  CD  t 

purposes,  land  damages,  and  the  (.'tearing  and  fencing 
of  the  line.  2d.  :  The  graduation  of  the  road-bed  to 
the  width  required  for  a  tirst-class  road.  3d.  :  Pro- 
viding for  the  best  (|uality  of  Bessemer  steel  rails, 
weighing  GO  lbs.  to  the  yard,  on  the  main  line,  and  on 
the  sidings,  the  best  quality  of  iron  rails  of  the  same 
weight  per  yard.  The  rails  will  be  laid  upon  cross- 
ties,  26  inches  from  center  to  center,  with  sj)lice  or 
fish  joints  and  iron  chairs,  and  with  12  inches  of  ballast 
beneath  the  ties.  4th.  :  Providing  sufficient  equip- 
ment, and  of  the  best  character  ;  the  necessary  de})ots, 
wood  and  water  stations,  shops  and  machinery,  docks, 


39 


ferry  bocats,  and  all  the  other  appointments  needed  for 
a  first-class  railway. 

The  favorable  grades  and  alignment  which  have 
been  obtained,  have  increased  the  cost,  and  together 
with  the  thorongh  constrnction,  equipment  and  ap- 
pointments necessr,ry  for  the  performance  of  the  large 
business  anticipated,  have  raised  the  estimate  to  the 
amount  above  named.  But  the  additional  cost  of  pro- 
curing the  low  grades  and  favorable  alignment  which 
has  been  adopted,  I  deem  a  wise  expenditure,  as  it 
will  so  increase  the  capacity  of  the  road  and  lessen 
the  operating  expenses,  that  50  per  cent,  of  the  gross 
earnings,  will  be  ample  to  operate  and  maintain  the 
road,  estimating  the  charges  for  carrying  passengers 
and  freight  at  the  lowest  rates. 


Respectfully  submitted. 


F.  N.  FINNEY, 

CJiief  Engineer, 


FoKT  EiiiK,  Ontario,  Feb.  15,  1871, 


h 


REPORT  OF  CONSULTING  ENGINEER. 


New  York,  February  15th,  1871. 

To  The  President  and  Directors  of  the  Canada 
Southern  Railway  Company  : 

Gentlemen :  You  have  requested  me  to  examine  the 
report  of  Mr.  F.  N.  Finney,  your  Chief  Engineer,  who 
has  made  instrumental  examinations  of  ihQ  i)eninsuhx 
of  Ontario,  for  the  purpose  of  obtaining  the  best  loca- 
tion for  your  proposed  railway,  between  the  Interna- 
tional Bridge  at  Buffalo  and  the  Detroit  and  St.  Clair 
Rivers. 

From  this  full  rei)ort  and  the  map  and  profiles  pre- 
pared by  Mr.  Finney,  I  derive  the  following  general 
facts : 

The  length  of  the  main  line  is  229  miles,  and  of  the 
Branch  is  62,  making  291  miles. 

Mr.  Finney's  maps,  profiles  and  report,  show  that 
this  is  not  only  the  shortest  line  between  the  objective 
points,  but  also  forms  a  necessary  link  between  the 
main  trunk  lines  west  of  the  Detroit  and  St.  Clair 
Rivers,  and  those  east  of  the  Niagara  River,  and  fur- 
nishes much  the  shortest  route  between  the  West  and 
East,  and  at  the  same  time  secures  grades  of  not,  in 
any  place,  exceeding  fifteen  feet  per  mile. 


42 


I  have  a  personal  knowledge  of  a  considerable  por- 
tion of  the  conntry,  over  which  your  railway  will  be 
built,  which  enables  me  to  confirm  (if  it  was  neces- 
sary,) many  of  the  particulars  in  the  report  of  Mr. 
Finney. 

The  line  of  the  road  passes  through  a  well-settled 
countr}^  which  will  immediately  contribute  a  consid- 
erable local  business,  which  will  annually  increase, 
sufficient  in  itself,  to  warrant  the  construction  of  the 
road. 

The  largest  contribution  of  through  business  to  the 
Great  Western,  is  from  the  Michigan  Central,  which 
will  have  a  shorter  and  cheaper  route  to  the  Atlantic 
markets,  by  your  line,  hence  it  will  undoubtedly  avail 
of  these  advantages  and  probably  turn  over  to  your 
road  a  considerable  amount  of  business,  which,  by  the 
existing  circumstances,  it  is  now  compelled  to  send 
over  the  Grreat  Western. 

It  must  also  be  considered,  that  the  trunk  lines  of 
railway,  west  of  the  line  of  the  Detroit  River,  are  now 
dependent  for  their  connections  with  the  great  trunk 
lines  eastward  of  the  Niagara  River,  upon  a  single  line 
of  railway,  through  the  southern  Peninsula  of  Ontario, 
which  at  any  time,  (as  has  often  happened,)  may  exact 
the  rates  which  a  monopoly  demands,  or  be  compelled 
to  take  tl  only  alternative,  of  forcing  the  traffic  over 
the  (south)  Lake  Shore  line,  which  is  forty-five  miles 
longer. 

As  some  of  the  managers  of  the  Great  Western 
Railway,  have  suggested  the  construction  of  a  "Loop 
Line  "  between  Glencoe  and  Canfield,  with  the  avowed 
object  of  preventing  the  construction  of  the  Canada 
Southern,  it  is  important  to  your  Company,  to  care- 
fully examine  the  reasons  urged  for  the  "Loop,"  and 


43 


how  far  it  would  affect  your  interests,  as  well  as  those 
of  the  (Ireat  Western,  if  it  should  ever  be  built. 

The  suggested  "Loop"  would  start  80  miles  from 
the  western  end,  and  149  miles  from  the  eastern  end 
of  the  Glreat  Western,  and  would  be  103  miles  long, 
and  attain  its  connection  with  Buffalo,  over  47  miles 
of  a  branch  of  the  Glrand  Trunk,  and  the  Interna- 
tional Bridge. 

The  saving  in  distance  on  the  through  business, 
to  New  York,  which  this  "Loop"  will  effect  over  its 
present  line,  would  be  but  five  miles. 

The  maximum  eastward  grades  over  the  G-reat 
Western,  are  55  feet  per  mile,  those  over  the  suggested 
"  Loop"  are  35  feet,  and  those  over  the  used  portion 
of  the  Grand  Trunk,  but  little  more.  It  is  admitted 
that  the  alignment  and  grades  over  the  combined  route 
are  more  favorable  than  over  the  main  line,  but  they 
are  also  as  much  inferior  to  those  of  the  Canada 
Southern,  as  they  are  superior  to  those  of  its  own  main 
line. 

The  cost  of  the  103  miles  of  this  Glencoe  "  Loop  " 
would  be  at  least  five  millions  of  dollars. 


In  the  face  of  these  circumstances,  the  Great  Western 
propose  as  follows : 

1st.  To  abandon  140  miles  of  the  main  line  en- 
tirely, so  far  as  through  traffic,  which  is  one-half  of 
their  whole  business,  is  concerned  ; 


2d.  To  build  a  road  rival  to  itself,  which  will  cut 
off  a  portion  of  the  remaining  rural  local  business,  on 
that  149  miles  of  the  main  line  ; 


-i!("«7T   II    '  Vil'.MP"'l<#.».'   ••»- 


44 

3d,  To  give  to  a  rival  Company  (the  Grand  Trunk) 
twenty  per  cent,  of  all  of  the  diverted,  through  and 
local  business,  which  diversion  together  is  about  three- 
fourths  of  the  whole  gross  earnings  ;  And  : 

4th.  To  leave  the  local  business  subject  to  the  ex- 
isting inconvenience  and  expense  due  to  the  higher 
grades  and  less  direct  route  of  the  main  line. 

If  I  was  called  upon  to  professionally  advise  the 
Great  Western  Company,  I  would  recommend  them 
to  reduce  certain  of  their  grades  eastward,  as  low  as 
the  nature  of  the  country  would  admit ;  and,  if  they 
should  ever  find  it  advisable  to  build  a  loop-line  to 
Buffalo,  to  start  it  from  a  point  on  their  main  line, 
nearest  to  the  Niagara  Bridge,  where  eastward  grades, 
in  the  direction  of  the  greatest  tonnage,  can  be  found; 
or,  in  other  words,  to  make  as  small  a  diversion  of 
mileage  from  the  main  line,  by  the  "  Loop,"  as  the  na- 
ture of  the  country  will  admit.  By  this  arrangement 
it  will  receive  as  much  through  traffic  as  by  the  "  Loop," 
and  will  also  obtain  all  of  the  advantages  of  the  im- 
provements on  the  main  line,  for  the  benefit  of  the 
local  business,  (which  is  one-half  of  the  whole,)  and  will 
save  the  expense  of  the  maintenance  and  operation  of 
an  additional  103  miles  of  railroad,  and  the  interest  on 
its  cost.  The  distance  through  to  New  York  is  sub- 
stantially the  same  by  the  main  line,  as  by  the  suggested 
"Loop." 

A  sum  insignificant  as  compared  with  the  cost  of 
the  "  Loop,"  expended  on  the  main  line,  would  ren- 
der its  grades  as  effective  as  those  of  the  "  Loop."  The 
tonnage  going  west  does  not  exceed  one-fourth  of  that 
going  east,  and  therefore,  a  less  sum  would  be  re- 


45 


quired  to  be  expended  upon  the  improvement  of  the 
grades  in  that  direction. 

This  advice  is  not  proffered  to  that  Company,  but 
the  suggestion  is  made  to  further  illustrate  the  position, 
that  the  construction  of  the  "  Loop  "  cannot  be  seriously 
entertained  by  the  stockholders  of  that  Company. 

Your  line  has  an  advantage  in  its  favor  in  regard  to 
distance  alone,  to  the  principal  objective  point,  of 
from  33  to  55  miles. 

There  is,  however,  a  more  important  question  to  be 
considered  between  your  line  and  that  of  an}"  existing 
one,  or  any  that  can  be  built,  being  that  of  its  superior 
advantages  of  grades  and  alignment. 

It  is  somewhat  difficult  to  state  the  moneyed  value 
of  the  latter,  as  in  it  is  involved  the  questions  of  safet}', 
speed  and  operating  expenses  ;  but  the  rei)ort  of  Mr. 
Finney  shows  some  facts  which  deserve  more  i)artic- 
ular  mention,  and  which  do  not,  I  believe,  occur  upon 
any  railway  on  this  continent. 

The  whole  distance  is  on  straight  lines,  except  four 
per  cent.  Two  tangents,  each  of  51  miles  in  length, 
are  united  by  a  short  curve  of  one  degree. 

What  is  also  remarkable,  is  that  these  extraordin- 
arily long  tangents  are  upon  almost  le\  A  grades,  and 
that  the  maxima  never  exceed  15  feet  per  mile,  and 
these  for  short  distances  of  only  one  to  three  miles. 
It  is  the  shortest  possible  line  that  can  be  found  across 
this  Peninsula  of  Ontario,  between  the  Niagara  and 
the  Detroit  or  St.  Clair  Rivers. 

In  regard  to  grades,  the  rule  may  be  assumed,  as 
sufficiently  accurate  for  this  comparison,  that  one  of 
twenty  feet  per  mile,  lessens  the  cargo  tonnage  of  a 
locomotive,  half  of  that  which  it  will  haul  upon  a  level, 
and  that  an  engine  of  thirty  tons  will  haul  three  hun- 


46 


drcMl  tons  of  cargo,  on  the  avoran'o  of  thn  \ cur  round, 
(as  tonnago  is  presented  ol"  dillcrent  [jroportions  ofbulk 
and  weight  and  with  the  different  conditions  of  the 
rail,)  on  a  grade  of  15  feet  })er  mile.  It  is  quite  true 
that  such  engines  often  haul  twice  this  load,  but  ex})e- 
rienced  railway  men  will  doubtless  consider  the  above 
as  lair,  in  its  practical  application  to  the  sid)ject  under 
discussion. 

It  will  be  noticed,  that  in  the  following  calculations, 
the  V  average  load  of  an  engine  of  30  tons,  has  been 
taken  at  300  tons  on  a  ruling  grade  of  15  feet  per 
mile,  for  the  mixed  traffic  of  a  railway.  If,  however, 
we  are  to  consider  the  movement  of  regular  fixed  items 
of  freight,  such  as  grain,  stock,  oil,  coal  or  lumber,  the 
load  of  such  an  engine,  over  such  grades,  should  be 
taken  at  400  tons  for  an  average  of  the  condition  of 
the  rails,  weather,  and  the  other  circumstances  men- 
tioned. 

The  Great  Western  line  encounters  grades  of  60 
feet  to  the  mile  going  westward,  and  those  of  55  feet 
eastward.  It  is  considered  as  a  fair  practical  presen- 
tation of  this  question,  to  assume,  that  in  regard  to  the 
trade  moving  eastward,  the  engines  on  its  existing 
main  line,  will  encounter  grades  of  25  feet  on  its  west- 
ern half,  and  those  of  55  feet  on  the  eastern  half,  and 
on  the  suggested  G-lencoe  "  Loop,"  grades  going  east, 
of  25  feet  for  the  western  half,  and  those  of  35  feet  for 
the  eastern  half. 

The  controlling  grades  of  all,  except  one  of  the 
working  divisions  of  the  Lake  Shore  Railway  proper, 
(to  Toledo,)  are  35  feet,  and  those  of  the  Michigan 
Southern  and  Central  are  from  35  to  45  feet  to  the 
mile. 

Applying   the  rule   before  stated,  to  these  several 


47 


iin'an 


linos,  it  will  bo  found  that  the  Caniida  Southorn  will 
havo  tho  Ibllowing  poirontjigos,  in  its  lavor,  ovor  tlio 
sibove-niontionod  linos  in  addition  to  those  of  distauce, 
viz. :  as  against  tho  oxisting  lino  of  tho  G roat  Wostcrn, 
of  00  por  cont.,  of  tho  Michigan  Sonthorn,  of  55  ])oi' 
cent.;  or,  as  api)liod  to  (ho  suggested  "  Loop,"  and 
to  tho  Lake  Shore  Line,  of  40  per  eent. 

When  we  combine  all  of  these  advantages  of  your 
line,  Ave  iind  in  its  favor,  1st:  That  tho  saving  in  the 
length  of  miles  of  construction  is,  from  33  to  55  miles 
in  length  over  its  coin|)etitors,  2d  :  That  the  saving 
in  the  cost  of  maintaining  and  0})erating  in  regaru  to 
distance  alone,  will  be  in  the  same  ratio.  3d  :  That 
the  saving  in  maintaining  and  operating,  effected  by 
the  lesser  grades  and  more  direct  alignment,  will  be 
from  40  to  60  per  cent ;  and,  4th  :  That  by  its  shorter 
line,  a  diminished  speed  of  trains  will  reach  the  ob- 
jective points  in  the  same  time,  the  saving  of  which 
may  bo  taken  as  shown  by  the  same  ratios.  That  is, 
that  practically,  tho  cost  of  all  the  expenses  of  running 
a  train  are  nearly  in  the  direct  ratio  of  its  s})eed. 

When  all  of  the  advantages  over  any,  and  all,  of 
the  existing  and  projected  competing  lines,  are  again 
combined,  the  result  proves  that  your  railway  will  not 
only  be  highly  productive  to  its  promoters,  but  will 
also  result  in  great  advantage  to  all  of  its  connecting 
western  and  eastern  lines. 

Both  of  the  existing  railways  which  were  located 
at  an  early  day's  engineering  across  the  Peninsula  of 
Michigan,  encounter  heavy  grades,  and  it  would  be 
difficult  to  avoid  them  without  radical  changes  in  their 
lines.  The  Goshen  branch  of  the  Southern  Michigan, 
avoids  the  elevation  encountered  upon  the  main  line, 
but  even  it  is  not  far  enough  south  at  its  western  end 


48 


to  secure  the  lowest  grades  for  the  whole  line  between 
Chicago  and  Lake  Eric.  The  extension  of  your  road 
over  that  Peninsula,  is  found  to  be  not  only  shorter 
than  any  of  the  existing  lines,  but  also  susceptible  of 
grades  of  not  exceeding  15  feet. 

There  is  a  remarkable  geographical  feature  of  the 
country  through  Central  New  York,  which  must  not 
be  lost  sight  of  in  this  discussion.  The  chain  of  moun- 
tains which  extend  through  Virginia,  Maryland  and 
Pennsylvania,  ihitten  down  to  the  low  table  lands  in 
western  New  York,  and  allows  the  vast  volume  of  the 
water  from  the  upper  Lakes,  to  tlow  i)ast  its  northern 
boundary  to  the  Atlantic,  Penetrating  this  plateau 
from  the  eastward,  is  the  Mowhawk  River,  which  vir- 
tually extends  the  Lake  Erie  plateau,  on  nearly  r^  level 
plane,  to  within  a  hundred  miles  of  the  Hudson. 

The  elevation  of  Chicago  is  565  feet  above  New 
York  City  ;  hence,  the  planes  connecting  the  two  places 
will  generally  be  in  the  direction  of  the  heaviest  traffic, 
and  gravity  becomes  an  important  assistance  to  the 
railway  tonnage  in  that  direction,  and  therein  ditfers 
from  the  lines  of  artificial  water  communication  by 
locks,  because  upon  the  latter  (an  idea  seldom  thought 
of,)  it  costs  as  much  to  go  down  hill  as  it  does  to  go 
up,  much  more  than  it  docs  upon  a  level. 

A  line  of  railway  extending  from  Buffalo  to  the 
Hudson  River,  with  grades  which  will  not  exceed  15 
feet,  is  attainable.  Such  a  line  need  not  diverge  from 
existing  or  projected  lines,  except  in  pa:*ticular  places. 

It  then  appears,  that  a  continuous  line  of  railway 
between  Chicago  and  New  York,  running  over  the 
Canada  Southern  Railway,  may  be  made,  upon  which 
the  maxima  grades  going  eastward,  will  not  exceed  15 
feet  per  mile.     , 


49 


This  wliole  line  and  alterations  will  ha  built  at  an 
early  day,  and  its  eflect  upon  the  through  traffic  will 
form  an  e[)och  in  the  history  of  Ainei'ican  radways. 

It  lias  heen  |)revionsly  stated  (hat  the  eargo  which 
an  engine  of  thirty  tons  will  regularly  haul,  upon  a 
grade  of  15  feet  ])er  mile,  is  400  tons. 

The  reported  cost  of  running  the  trains,  both  east  and 
west  of  your  line,  over  the  existing  grades  of  35  feet 
and  upwards,  is  from  one  to  on(^-and-a-half  dollars  per 
mile.  Engines  of  the  same  size  upon  your  road,  will 
haul  twice  as  much  as  is  now  carried  over  the  existing 
roads,  and  at  a  cost  but  little  exceeding  that  now  in- 
curred upon  these  lines,  and  when  new  and  amended 
lines  are  built  westward  to  Chicago  and  eastward  to 
New  York,  on  ecpially  advantageous  grades,  the  cost 
of  transport  between  those  })oints  will  be  correspond- 
ingly reduced  upon  such  staple  articles  as  grain,  stock, 
oil,  coal  and  lumber,  which  are  constantly  and  regu- 
larly ottered  in  large  quantities  for  the  through  trans- 
port. 

If  the  cost  of  running  the  trains  of  the  existing 
roads  is  taken  at  one  dollar  per  mile,  (which  would  be 
sufficient  to  charge  to  this  class  of  regular  through 
business  that  requires  but  one  handling  at  each  end  of 
nine  hundred  miles,)  the  cost  of  the  transport  of  a 
bushel  of  grain  from  Chicago  to  New  York  will  not 
exceed  22  cents,  and  if  the  cheap  water  transport  of 
the  Hudson  River  is  availed  of,  this  price  may  be  re- 
duced two  cents  per  bushel. 

These  estimates  of  train  expenses  are  based  upon 
the  exi)erience  of  the  ordinary  track  with  iron  rails. 
By  using  steel  on  the  whole  line  between  Chicago  and 
New  York,  the  rails  will  last  five  times  as  long  as 
those  of  iron,  and  reduce  the  cost  of  the  repairs  of 


,'3,"»V':«^'HPii  II  iijs  1.. 


50 

the  track  ten  or  fifteen  per  cent.     The  use  ot  steel 
rails  applies  more  particularly  to  the  Canada  Southern  I 

Railway,  because  they  will  cost  but  little  more  than 
the  best  iron  rails  do  in  the  United  States. 

Such  rates  as  may  be  reasonably  expected  will  pay 
to  the  Railway  Companies  a  respectable  net  revenue, 
and  when  to  this  is  added  the  saving  of  insurance  and 
the  necessary  storing  and  handling  expenses  and  the 
certain  delivery  of  the  freight  at  the  Atlantic  market, 
within  four  days  after  its  shipment,  at  all  seasons  of 
the  year,  the  cost  of  transport  by  rail  will  be  so  re- 
duced that  it  cannot  fail  to  give  a  new  impetus  to  the 
trade  between  the  West  and  East  and  jirove  highly 
beneficial  to  both  sections  of  the  country. 

Respectfully  submitted, 

WM.  J.  McALPINE, 

Consulting  Engineer. 


New  York,  February  15,  1871, 


EXTRACTS. 


At  a  meeting  of  the  shareholders  of  the  Grreat 
Western  llailwa}'  Company,  held  in  London,  England, 
in  July  last,  called  to  consider  the  question  of  build- 
ing- the  "Loop  Line  "  from  Ulencoe  to  Cantield,  the 
chairman,  Alderman  Dakin,  now  Lord  Mayor  of 
London,  in  advocating  this  measure,  said,  '"It must  oe 
obvious  to  those  who  have  studied  the  map  which  has 
been  sent  round  to  the  shareholders,  that  if  the  pro- 
ject called  the  Southern  Railway  there  shown  were 
carried  out  in  hostile  hands,  it  would  in  a  very  mate- 
rial degree  affect  the  prosperity  of  this  Company. 
When  we  remember  that  the  revenue  of  this  Company 
is  dependent  upon  its  through  traffic  to  the  extent  of 
two-thirds  of  the  whole  earninu's  of  the  line,  and  that 
upon  that  traffic  dei)ends  our  dividend,  aiul  when  we 
observe  that  the  Southern  railway,  if  constructed, 
will  have  better  gradients  than  our  own  line,  and  bet- 
ter means  of  transportation  to  New  York,  we  cannot 
but  feel  that  we  are  liable  to  suffer  from  this  project 
most  materially,  if  not  to  be  damaged  to  an  extent 
which  would  be  irrei)arable.  Therefore  the  share- 
holders will  see  that  however  reluctant  the  board  mav 
be  to  bring  before  them  any  i)lan  involving  the  ex- 
penditure of  a  large  sum  of  money,  yet,  as  that  is  nec- 
essarv  to  avoid  a  much  greater  evil,  and  to  prevent 
great  damage  to  their  interests,  we  should  altogether 
have  failed  in  our  duty  if  we  had  omitted  to  bring  the 
matter  before  you  as  we  are  now  doing.'"     *     *     * 


52 


"Now,  this  organization  (the  Canada  Southern)  de- 
pends entirely  for  its  being  successfully  carried  out 
upon  the  question  whether  the  municipalities  and 
townships  through  whose  districts  the  line  would  pass, 
will  subscribe  a  million  and  a  half  dollars  as  a  bonus  or 
free  gift  to  those  who  promote  the  line;  and  it  is  upon 
the  fulfillment  of  that  condition  the  construction  of 
the  line  is  depenaent."         ^'         *         * 

"  I  am  prepared  to  state  to  the  meeting  that  we  have 
information,  the  latest  advices  having  arrived  this 
morning,  that  the  contribution  thus  to  be  made  is  an 
essential  condition  of  the  construction  of  the  line,  and 
this  entirely  depends  upon  the  vote  which  we  pass 
to-day.  If  the  Company  shall  see  fit  in  consequence 
of  the  considerations  which  are  placed  before  it,  to  de- 
termine to  make  this  (Loop)  line,  then  the  Canada 
Southern  line  of  Mr.  Thomson  and  his  supporters  will 
at  once  fall  dead  to  the  ground.  If,  on  the  contrary, 
you  imperfectly  support  it,  or  give  it  a  hesitating  or 
a  qualified  assent,  we  have  reason  to  believe  that  such 
is  the  state  of  feeling  in  the  district  that  the  local  peo- 
ple will  at  once  proceed  to  vote  the  necessary  bonuses, 
and  then  those  gentlemen  in  alliance  with  Mr.  Thom- 
son, who,  so  far  as  wealth  is  concerned,  afford  a  suffi- 
cient security  for  their  power  to  do  what  they  under- 
take, will  at  once  make  this  line."         *         *         * 

"  If  we  were  to  omit  to  do  what  we  can  to  prevent 
that  line  from  being  made,  it  would  be  one  of  the 
most  fatal  days  for  the  interests  of  the  Great  Western 
of  Canada  that  could  possibly  arise."       *       *       * 

"If  this  line  were  built,  it  wovdd  reduce  the  Great 


,  '-"l 


53 


Western,  I  have  no  hesitation  in  saying,  very  much 
to  the  condition  of  a  local  line.  If  it  is  allowed  to  be 
built,  it  will  effectually  cripple  the  through  traffic  upon 
which  our  dividend  mainly  depends." 


* 


* 


Mr.  Sangstcr,  in  opposition  to  the  construction  of 
the  "  Loop  Line,"  remarked  as  follows  :  "  Everything 
that  you  have  said  tends  to  urge  us  on  to  make  that 
line  and  to  show  that  some  great  calamity  will  come 
upon  us  if  it  be  not  made.  I  am  of  a  different  opinion. 
When  you  stated  that  this  new  line  is  to  start  from 
Glencoe,  the  idea  flashed  across  my  mind  that  there 
was  once  a  "massacre  of  Glencoe  "  in  Scotland,  and 
that  if  this  new  railway  is  sanctioned  by  the  share- 
holders of  this  Company,  there  will  probably  be  an- 
other ''massacre  of  Glencoe  "  in  Canada.  I  think 
there  is  no  necessity  whatever  for  the  making  of  this 
new  line." 


* 


* 


* 


"  I  have  no  doubt  that  the  immediate  effect  of  the 
present  proposal  will  be  that  our  property  will  be- 
come greatly  depreciated." 


* 


* 


* 


"I  think  that  if  we  are  to  layout  our  money  it 
would  be  better  to  lay  it  out  on  our  present  line  ;  sup- 
posing that  it  would  cost  the  same  amount,  we  shall 
in  that  case  still  have  the  same  servants  and  the  same 
stations,  and  our  traffic  would  no  doubt  increase. 

The  new  line  which  is  proposed,  would  decrease 
by  so  much  the  traffic  on  the  existing  line  ;  we  should 
have  robbed  Peter  to  pay  Paul  by  taking  the  money 
out  of  one  pocket  to  put  it  into  the  other.  I  caution 
the  shareholders  of  this  Company,  and  I  caution 
you,  to  beware  of  what  is  now  contemplated." 


54 


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No. 


FIKST   MORTGAGE  7  PER  CENT. 


#1,000 


%mm. 


il£n 


Mrinci^Hl  guimbk  gmi'n  hi,  1$06. 


AT  THE 


D&ioo  Trust  lm\n]  of  lew  M, 


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^neli   3Sona  ana  a??n  en^eie-j/  //leicon  jna//  no^  Aa4-J  o^-  /e  /ian-i/eifi/Ze  exce/u 

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ciSo'na  i-^  du/yec/  /o  me  ce'??eM{en<i  enae4<)e(/ /feiecn. 

S/Vieh    3(jon(/ <i/a// no/  /eeome  omma/ola  un/e^Jd  i/  d/m// /ia?je  /een  eoun/eidm'??e 

jjll    Q^CHtilHOtlH    whet  t  of  If  ■^/^  '<^"'^/  ^c/M/muy   Aid  eatuet/  <Vd  cot/fc^a/e  4m/ 

/o    le   <*//f;.i/€e/  ///    //e   d/f/na/u/ed    o/  t'/d     ty  Udiaen /<(»(/,  J ^clei 


CoHttters  iff  lied  by 


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n.ij/eia//  excr^i/  /y  /iami/ei  on  //e  /00/i  c/  Me    ^om^m???/  a/  fY-d  aaeffey  in  //e  daer/  ^Zj/  i.f\ 

i  uyf.j/'ia/wn  r/  ct/meu/i/i  cc'ym/  /^ecn  A  //e  /iam/^i  aa^n/  0/ //e    '^om/mny.         W/ii  i 

en  coa?iYa'k'y^?ef/ /jy  //e  .Uff'r/  ^H^.i/ees,   rd  //eii  de/cceddoid  in  i^e    Wim/. 


%x\\%\u%. 


■,r*-x/-''^_.^>JN#^..J^~Ni::^  /-^,_^_N-'*>r^.>-N/^^  Z--^. 


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P"^*  j^-^'  '**^--'^—.  lr% 


Transferred  hy • 

to,  and  rcijhtered  in  name  of 

.187 

Agent. 


No. 


FIRST   MOE 


Conditio  s\ 

This  Bond,  at  the  option  of  the  holder,  will  he  made  a 
Sterling  Bond,  hy  application  at  the  Agency  of  the  Coiu- 
pany  in  JVeio  York  or  London,  England :  principal 
and  interest  pay  ahle  at  the  Comiyamfs  Agency  in  Lon- 
don, England,  or  in  the  City  of  Neir  York,  at  the  rate 
of  1 100  hundred  pounds  )^terling  for  the  principal  of  the 
hand  and  seven  pounds  sterling  for  each  coupon. 


« 


§nmi^Hl  §1 


Union  Irnsl 


MMH'  #: 


} 


f 


No. 


FIRST   MORTGAGE  7  PER  CENT. 


#1,000 


hM 


''» 


§rmcipnt  §Hmhh  ^mitj  M  Id  OB, 


AT   THE 


don  Tml  Coniaii;  of  lew  M, 


p.  ^,  ft. 


OONDfTIOX. 

This  Bond  is  suhj<'ct  to  he  redeemed  at  jxtv  ih  pur- 
suance of  the  Mort<i<i<je,  as  folio  ir,s :  A  sinkhuj  fond 
will  he  edahlishcd  hi/  the  Company  hi/  pai/iinj  into  the 
same,  on  or  htfore  the  several  dai/s  xpenfed  heloir,  the 
several  sums  helow  stated  opposite  .such  days  respectively, 
and  the  like  anwvnt  of  hands  will  he  redeemed  oat  of 
x(i  id  sinking  fund  npon  caeJi.  of  said  dai/n  rexpevtiveli/. 
The  particular  hands  so  to  he  redeem  a  I  in  each  caf<e  irill 
he  determined  hy  lot  in  2>ursaa7\ce  if  the  moiiijaije,  and 
the  result  of  the  lot  in  each  case  will  he  /nihliscil  in  \cic 
York^and  Lowlon^Knijland,  hy  adcertisennnt  in  a  daily 
nexospaper  of  each  of  said  cities,  at  least  thirty  dayx  he- 
fore  the  time  (f  redemption  ;  from  ivhich  time  interest 
on  the  hands  denignated  shall  cease  to  accrue,  namely : 


TIME  or  REDEMPTION. 

AMT.   OF  nONUS  TO  BE  HEDEEMEU. 

Jiiunary  1,  1875. 

S  82,000. 

Jamuii-y  1,  187G. 

87,000. 

Jiiunary  1,  1877. 

0M,OO(). 

January  1,  1878. 

100,000. 

Jamuiry  1,  1870. 

107,000. 

January  1,  1880. 

114,000. 

January  1,  1881. 

122,000. 

January  1,  1882. 

131,000. 

January  1,  188:5. 

140,000. 

January  1,  1881. 

150,000. 

January  1,  1885. 

1(50,000. 

January  1,  188G. 

■     172,000. 

January  1,  1887. 

184,000. 

January  1,  1888. 

190,000. 

January  1,  1889. 

210,000. 

January  1,  18{)(). 

225,000. 

January  1,  1801. 

241,000. 

January  1,  1802. 

257,000. 

January  1,  1893. 

275,000. 

January  1,  1804. 

295,000. 

January  1,  1805. 

315,000. 

January  1,  180(). 

337,000. 

Jauuiiry  1,  1807. 

3(51,000. 

January  1 ,  1808. 

38(5,000. 

January  1,  1800. 

413,000. 

January],  1000. 

442,000. 

Januaiy  1,  1001. 

473,000. 

January  1,  1002. 

50(5,000.          i  :. 

January  1,  190;}. 

542,000. 

January  1,  1904. 

580,000. 

Januaiy  1,  1905. 

-    _                  (520,000. 

January  1,  190G. 

■""               684,000. 

. 

$9,000,000. 

CoNDiTioy. 

7'hlft  lioiid  is  suhjt'ft  to  be  redeemed  of.  pur  in  jnir- 
surf  nee  <tf  the  MoHtftu/e,  us  folloirs :  A  sinking/  fund 
will  he  esUddishid  In/  tite  Company  h;/  pai/lntj  into  the 
same,  on  or  hr/'ore  the  seeend  drii/s  .specijicd  heloin,  the 
several  sums  below  stated  opposite  such  dai/s  respi-ctire/j/, 
and  the  like  amount  of  bonds  will  !»■  redeemed  out  of 
said  sinkinij  fund  tijxui  each  of  .said  daijs  respectlrelij. 
The  particular  bonds  so  to  be  redeemed  in  each  case  will 
be  determined  by  lot  iii  pursuatice  of  the  mryrtyatje,  and 
the  result  <f  the  lot  in  each  ease  will  be  publised  in  .\< w 
YorJi\and  Londoii,  Kntjiand,  by  adeertisement  in  a  daily 
neujspiiper  of  each  of  said  cities,  at  least  thirty  days  be- 
fore the  time  of  redemption. ;  from  udiieh  time  interest 
on  the  bunds  designated  shall  ceaae  to  accrue^  namely : 


V 


TIME  OF  HEDEMl'TION. 

Juuiiiiry  1,  1875. 
Jiimiiiiy  1,  1870. 
Jimuury  1,  1H77. 
.Tiiiuiiiry  1,  1878. 
Jiimiiiry  1,  187!). 
Jiumary  1,  1880. 
Jaimiiiv  1,  1881. 
Jaimiiry  1,  1882. 
Jiinuiiry  1,  188;}. 
Jttnnury  1,  1884. 
January  1,  1885. 
January  1,  188(5. 
January  1,  1887. 
January  1,  1888. 
January  1,  1880. 
January  1,  18!)0. 
January  1,  185)1. 
January  1,  18!»2. 
January  1,  181)3. 
January  1,  1894. 
January  1,  1805. 
January  1,  18!)(). 
January  1,  1897. 
Januuiy  1,  1898. 
January  1,  1899. 
January  1,  1900. 
January  1,  1901. 
January  1,  1902. 
January  1,  1903. 
January  1,  1904. 
Januaiy  1,  1905. 
January  1,  1906. 


AMT.   OF  IJONDS  TO  HK  HKDEEMED. 

$  82,000. 

87,000. 

93,000. 
100,000. 
107,000. 
ll4,0(Ht. 
122,000. 
131,000. 
140,000. 
150,000. 
1()(),000. 
.  172,000. 
184,000. 

i9(;,ooo. 

210,000. 
225,000. 
241,000. 
257,000. 
275,000. 
295,000. 
315,000. 
337,000. 
3()1,000. 
38(>,i)00. 
413,000. 
442,000. 
473,000. 
50(5,000. 
542,000. 
580,000. 
020,000. 
684,000. 

$9,000,000. 


MORTGAGE. 


This  Indenture,  mado  this  fifteenth  day  oi  December  in  the 
year  of  onr  Lord  One  thousand  eiglit  hundred  and  seventy, 
between  the  Canada  Southern  Railway  Company,  a  body 
politic  and  corporate,  duly  incorporated  by  the  Legislature  of 
the  Province  of  Ontario,  in  the  Dominion  of  Canada,  of  the 
first  part,  and  William  Lawrence  Scott,  of  the  City  of  Erie, 
State  of  Pennsylvania,  Banker,  and  Kenyon  Cox,  of  the  City 
and  State  of  New  York,  United  States  of  America,  Banker, 
Trustees  as  hereinafter  mentioned,  of  the  second  part : 

Whereas,  The  Canada  Southern.Railway  Company,  under 
the  powers  conferred  by  the  several  statutes  relating  tiiereto, 
have  commenced  and  are  engaged  in  the  construction  of  their 
line  of  Railway  in  the  Province  of  Ontario,  which,  by  the  said 
statutes,  they  are  duly  authorized  to  construct  from  a  point 
in  the  Township  of  Bertie,  near  the  Village  of  Fort  Erie, 
passing  through  the  Town  of  St.  Thomas,  to  some  point  in  the 
County  of  Essex,  in  or  near  the  Town  of  Sandwich,  or  the 
Town  of  Windsor,  and  also  to  some  point  in  or  near  the  Town 
of  Amherstburg  in  the  same  County,  and  also  to  a  point  on 
the  River  St.  Clair,  in  the  Township  of  Moore,  in  the  County 
of  Lambton ;  and  whereas,  to  enable  the  said  Company  more 
readily  to  complete  its  said  undertaking,  the  said  Company 
hath  resolved  to  borrow  under  the  provisions  of  the  Railway 
Act,  and  to  issue  Bonds  for  an  amount  not  to  exceed  in  the 
aggregate  the  sum  of  Nine  millions  of  dollars,  nor  more  than 
Thirty  thousand  dollars  per  mile  of  Railway  to  be  constructed, 
and  to  secure  the  payment  of  the  said  Bonds,  with  interest,  by 
the  Mortgage,  pledge  and  hypothecation  of  the  said  Railway, 
its  lauds,  tolls,  revenues,  present  and  future  property  and 
effects,  franchises  and  appurtenances ; 


68 


And  Whkrkas,  tlic  said  Bonds,  so  to  be  issued  \\y  the  said 
Coinpany,  JH'e  to  be  eertitied  y  the  countersigning  thereof  by 
the  parties  of  tlie  second  i)art,  or  the  Trustees  for  tlie  time 
being  of  tlieso  presents,  and  such  countersigning  sliall  be  evi- 
dence that  such  Bonds  are  of  tlie  issue  intended  to  be  secured 
by  this  Mortgage,  and  are  to  be  of  the  nature  and  effect  follow- 
ing, that  is  to  say :  First,  registered  Bonds  of  the  denomina- 
tion of  one  thousand  dollars,  transferable  only  on  the  register 
of  the  Company,  and,  Secondly,  Bonds  with  Coupons  attached, 
payable  to  John  F.  Tracy,  or  bearer,  of  the  denomination  of 
one  thousand  dollars.  Each  class  of  Bonds  to  be  payable  in 
lawful  mone}'  of  the  Dominion  of  Canada,  in  the  said  City  of 
New  York,  on  the  first  day  of  January,  in  the  year  one  thousand 
nine  hundred  and  six,  with  interest  in  the  meantime  at  the  rate 
of  seven  per  centum  per  annum,  payable  in  like  lawful  money 
of  the  Dominion  of  Canada,  haU'-ycarly,  in  the  said  City  of 
New  York,  on  tae  first  days  of  January  and  July  in  each  year  ; 
with  a  provision  that  at  any  time  all  or  any  part  of  the  said 
Bonds,  at  the  option  of  the  holder,  will  be  made  Sterling 
Bonds,  payable  in  Sterling  Money  of  Great  Britain,  in  Lon- 
don, England,  or  in  the  City  of  New  York,  at  the  rate  of  two 
hundred  pounds  Sterling  for  every  bond,  and  seven  pounds 
Sterling  for  each  half-year's  interest  or  coupon;  and  such 
Sterling  Bonds  shall  carry  all  privileges  of  conversion  or 
otherwise  as  fully  as  the  Bonds  originally  issued,  or  intended 
to  be  issued,  under  these  presents  ; 

And  "Whereas,  the  said  Railway  Company  hath  agreed  to 
execute  these  presents  as  and  for  a  first  mortgage  to  secure 
the  said  issue  of  the  B(mds  aforesaid,  being  strictly  limited 
to  the  sum  of  Nine  millions  of  dollars  in  the  aggregate,  and 
the  said  sum  of  Thirty  thousand  dollars  per  mile  of  railway 
to  be  constructed ; 


New  THEREFORE,  tlicsc  presents  witness  that  for  the  pur- 
pose of  securing  the  payment  of  the  said  Bonds,  being  in  all 
the  said  sum  of  Nine  millions  of  dollars,  limited  as  aforesaid, 
with  interest  as  aforesaid,  and  for  the  further  consideration  of 
one  dollar  in  hand  paid  by  ♦^he  parties  of  the  second  part  to  the 


59 


party  of  tlie  first  part,  the  receipt  whereof  is  hereby  acknowl- 
edged, the  party  of  the  first  part  hath  granted,  bargained  and 
sold,  and  by  these  presents  doth  grant,  bargain  and  sell  nnto 
the  said  parties  of  the  second  part,  their  heirs  and  assigns,  and- 
to  their  snccessors  in  the  trust,  all  tiio  following,  present  and 
future  to  be  acquired  estate  and  property  of  the  said  Com- 
pany ;  that  is  to  say,  their  Railway  and  undertaking  made, 
in  course  of  construction,  and  to  be  made  between  its  terminus 
in  the  township  of  Bertie,  near  the  village  of  Fort  Erie  afore- 
said, to  its  respective  termini,  at  or  near  the  towns  of  Sand- 
wich, Windsor,  and  Amherstbnrg,  aforesaid ;  and  also  to  its 
terminus  on  the  St.  Clair  River,  in  the  townshij)  of  Moore, 
aforesaid ;  and  being  situate  in  the  following  counties,  that  is 
to  say:  Welland,  Haldimand,  Oxford,  Norfolk,  Elgin,  Kent, 
Essex,  Middlesex  and  Lambton,  all  in  the  Province  of  Ontario, 
and  Dominion  of  Canada;  including  the  right  of  way,  and 
the  land  occupied  thereby ;  together  with  the  superstructure 
and  tracks  thereon,  or  to  be  thereon ;  and  all  iron  rails,  ties 
and  other  materials  placed  or  to  be  placed  or  used  thereon, 
procured  or  to  be  procured  therefor,  and  all  bridges,  viaducts, 
culverts,  fences,  stations,  station  grounds,  buildings  and 
erections  thereon,  and  all  machine  shops  and  other  shops  held 
or  acquired  for  use,  in  connection  with  said  Railway  or  the 
business  thereof;  and  including  also  all  locomotives,  tenders, 
cars  and  other  rolling  stock  or  equipment;  and  all  machinery, 
tools,  implements,  fuel  and  materials  for  the  constructing, 
operating,  repairing  or  replacing  the  said  Railway  or  any 
part  thereof,  or  any  of  its  equipments  or  a))purtenance8; 
whether  now  held  or  at  any  time  hereafter  acquired,  all  of 
which  things  are  hereby  declared  to  be  appurtenances  and 
fixtures  of  the  saiJ  Railway,  and  to  be  included  in  and  to  pass 
by  these  presents ;  and  also  all  franchises  connected  with  or 
relating  to  the  said  Railway,  or  the  construction,  maintenance, 
or  use  thereof,  now  held  or  hereafter  acquired  by  the  said 
party  of  the  first  part,  and  all  corporate  and  other  franchises 
which  are  now  or  may  bt  hereafter  possessed  or  exercised  by 
the  said  party  of  the  first  part ;  together  with  all  and  singular 
the  tenements,  hereditaments  and  appurtenances  thereunto 
belonging,  or  in   anywise  appertaining,  and  the  reversions, 


60 


remainders,  tolls,  incomes,  rents,  issues  and  profits  thereof, 
and  all  the  estate,  riglit,  title,  interest,  property,  possession, 
claim  and  demand  whatsoever,  as  well  in  law  as  in  equity,  of 
the  said  party  of  the  first  part  of,  in  and  to  the  same,  and  any 
and  every  part  thereof  with  the  appurtenances.  To  have  and 
to  hold  the;said  premises  and  every  part  thereof  until  the  said 
parties  of  the  second  part,  as  joint  tenants  and  not  as  tenants 
in  common,  and  the  survivor  of  them,  and  to  the  heirs  and 
assigns  of  such  survivors,  and  to  their  successors  in  the  trust, 
to  the  only  proper  use  and  behoof  of  the  said  parties  of  the 
second  part,  and  of  the  survivor  of  them,  and  of  the  heirs  and 
assigns  of  such  survivor,  and  to  their  successors  in  the  trust ; 
but  nevertheless  upon  the  trusts,  and  for  the  purposes  herein 
expressed,  that  is  to  say : 

First. — Until  default  shall  be  made  in  the  payment  of  prin- 
cipal or  interest  of  the  said  Bonds  or  some  of  them,  or  until 
default  shall  be'made  in  respect  to  something  herein  required 
to  be  done  or  kept  by  the  Canada  Southern  Railway  Com- 
pany, the  said  Railway  Company  shall  be  suffered  and  per- 
mitted to  possess,  operate,  ma.  age  and  enjoy  the  said  Railway 
with  its  equipments  and  appurtenances,  and  to  take  and  use 
the  rents,  incomes,  profits,  tolls  and  issues  thereof,  in  the  same 
manner  and  with  the  same  effect  as  if  this  deed  had  not  been 
executed. 


to  tin 
ations 
them 
tolls, 
and  o 


Second. — In  case  default  shall  be  made  in  the  payment  of 
any  interest  on  any  of  the  aforesaid  Bonds  issued,  or  to  be 
issued,  according  to  the  tenor  thereof,  or  in  any  requirement 
to  be  done  or  kept  by  the  Canada  Southern  Railway  Com- 
pany, and  if  such  default  shall  continue  for  the  period  of  six 
months,  it  shall  be  lawful  for  the  said  trustees  or  the  survivor 
of  them  or  their  or  his  successors,  personally  or  by  their  or 
his  attorneys  or  agents,  to  enter  into  and  upon  all  and  singular 
the  premises  hereby  conveyed,  or  intended  so  to  be,  and  each 
and  every  part  thereof,  and  to  have,  hold  and  use  the  same, 
operating,  by  their  or  his  superintendents,  managers,  receivers 
or  servants,  or  other  attorneys  or  agents,  the  said  Railway 
and  conducting  the  business  thereof,  and  making  from  time 


61 


of 


iCllt  of 
Ir  to  be 
Irement 
Oora- 
of  six 
Urvivor 
llieir  or 
Ingular 
id  each 
same, 
jeivers 
[ailway 
time 


to  time,  all  repairs  and  replacements,  and  such  useful  alter- 
ations, additions,  and  improvements  thei-eto,  as  may  seem  to 
them  or  him  to  be  judicious,  and  to  collect  and  receive  all 
tolls,  freights,  incomes,  rents,  issues  and  profits  of  the  same 
and  of  every  part  thereof,  and  after  deducting  the  expenses  of 
operating  the  said  Railway  and  conducting  its  business  and 
all  of  the  said  repairs,  replacements,  alterations,  additions,  and 
improvements,  and  all  payments  which  may  be  made  for 
taxes  or  assessments,  prior  to  the  lien  of  these  presents,  upon 
the  same  premises  or  any  part  thereof,  as  well  as  a  just  com- 
pensation for  their  or  his  own  services,  to  apply  the  moneys 
arising  as  aforesaid  to  the  payment  of  interest  in  the  order  in 
which  such  interest  shall  have  become  due  or  shall  become 
due,  ratably  to  the  persons  entitled  thereto ;  and  after  paying 
all  interest  which  shall  have  become  due,  to  apply  the  same 
to  the  satisfaction  of  the  principal  of  the  aforesaid  Bonds, 
which  may  be  at  that  time  due  and  payable,  ratably  and 
without  discrimination  or  preference ;  and  after  the  said  in- 
terest and  principal  so  in  default  shall  have  been  fully  paid, 
then  the  said  trustees  shall  restore  the  possession  of  the  Rail- 
way with  its  franchises  and  appurtenances  to  the  said  Railway 
Company  and  its  successors. 

Third. — The  Canada  Southern  Railway  Company  shall, 
from  time  to  time  and  at  all  times  hereafter,  and  as  often  as 
thereunto  requested  by  the  Trustees,  execute,  acknowledge 
and  deliver  all  such  further  deeds,  conveyances  and  assu- 
rances in  the  law  for  the  better  assuring  unto  the  Trustees 
and  their  successors  in  the  trust  hereby  created  upon  the 
trusts  herein  expressed,  the  said  Railway,  with  the  equipment 
and  appurtenances  hereinbefore  mentioned  or  intended  so  to 
be,  and  all  other  property  and  eft'ects  whatsoever  which  may 
at  any  time  hereafter  be  acquired  for  use  in  connection  with 
the  said  railway  or  any  part  thereof,  and  all  franchises  now 
held  or  hereafter  acquired,  as  by  the  Trustees  or  the  survivor 
of  them  or  their  successors,  or  by  their  or  his  counsel  learned 
in  the  law,  shall  be  reasonably  advised,  devised  or  required. 

Fourth. — The  Eoard  of  Directors  of  The  Canada  Southern 


62 


Railway  Company  may,  from  time  to  time,  by  resolution,  re- 
quire the  said  Trustees  to  convey,  by  way  of  release  or  other- 
wise, to  discharge  from  the  operation  of  these  presents,  any 
lands  acquired  or  held  for  the  purposes  of  stations,  depots, 
shops,  or  other  buildings  or  premises  connected  therewith,  or 
which  may  be  held  for  the  supply  of  fuel,  gravel,  or  other 
material,  or  any  lands  which  may  have  become  disused  by 
reason  of  a  deviation  in  the  said  line,  or  of  a  change  of  the 
location  of  any  station  house,  depot,  shop  or  other  building  or 
premises,  or  an}'  lands  which  the  said  Board  of  Directors  may 
deem  it  expedient  to  disuse  or  abandon,  by  reason  of  such 
deviation  or  change  ;  and  which  lands  respectively  shall,  by 
resolution  of  the  said  Board,  be  declared  to  be  unnecessary 
for  the  i)nrposes  and  business  of  the  said  Company ;  and  in 
every  such  case  the  said  Trustees,  when  so  required,  shall 
execute  such  releases  and  discharges  accordingly' ;  and  it  i?s 
liereby  declared  that  any  lands  which  may  be  acquired  in 
substitution  for  lands  so  released  or  discharged,  as  well  as  any 
lands  subsequently  acquired  by  the  said  Company  for  the  use  or 
convenience  of  its  Hallway,  or  in  connection  therewith,  shall 
be  deemed  to  come  within  the  operation  of  these  presents, 
and  to  be  included  therein,  and  shall  be  conveyed  to  and  held 
by  the  said  Trustees,  upon  the  trusts  of  these  presents ; 
and  it  is  further  declared,  that  the  said  Company  may,  from 
time  to  time,  sell  or  dispose  of  any  part  of  the  equipment, 
rolling  stock,  machinery,  implements  or  materials  at  any  time 
held  or  acquired  for  the  use  or  purposes  of  said  Railway,  as 
may,  by  resolution  of  the  Board  of  Directors,  be  declared  to 
be  no  longer  useful  or  necessary  for  the  said  Company's 
business,  and  any  new  or  subsequently  acquired  equipment, 
rolling  stock,  machinery,  im{)lements  atid  materials,  shall 
come  within  and  be  subject  to  these  presents. 


Fifth. — If  the  said  Canada  Southern  Railway  Company 
shall  well  and  truly  pay  the  sums  of  money  required  to  be 
paid  by  the  said  Company,  and  all  interest  thereon  according 
to  the  tenor  and  effect  of  said  lionds,  and  shall  well  and  truly 
keep  and  perform  all  things  herein  required  to  be  kept  or 
performed  by  the  said  Company,  according  to  the  true  intent 


63 


and  meaning  of  these  presents,  or  if  the  said  Bonds  and  in- 
terest pajablo  thereon  become  in  nnywise  paid  and  satisfied, 
then  in  that  ease  the  estate,  right,  title  and  interest  of  the 
said  parties  of  the  second  part,  and  of  their  successors  in  the 
trust  hereby  created,  shall  cease,  determine,  and  become  void, 
otherwise  the  same  shall  be  and  remain  in  full  force  and 
virtue. 


ly,  as 
ared  to 
npany's 
ipment, 
shall 


ampany 
d  to  he 
cord  ins,' 

1  truly 
kept  or 

intent 


Sixth. — It  is  mutually  agreed  by  and  between  the  parties 
hereto  that  the  word  Trustees  as  used  in  these  presents  shall 
be  construed  to  mean  the  Trustees  for  the  time  being,  whether 
one  or  both  be  original  or  new,  and  whenever  a  vacancy  shall 
exist  to  mean  the  survivor  or  continuing  Trustee,  and  such 
Trustee  shall,  during  such  vacancy,  be  competent  to  exercise 
all  the  powers  granted  by  these  presents,  to  the  parties  of  the 
second  part;  and  it  is  mutually  agreed,  by  and  between  the 
parties  hereto,  as  a  condition  on  which  the  parties  of  the 
second  part  have  assented  to  these  presents,  that  the  said 
Trustes  shall  not  in  any  manner  be  i*esponsible  for  any  default 
or  misconduct  of  each  other ;  and  that  the  said  Trustees  shall 
be  entitled  to  just  compensation  for  all  services  which  they 
may  hereafter  render  in  their  trust,  to  be  paid  by  the  said 
Company ;  and  that  either  of  the  said  Trustees  or  any  suc- 
cessor may  resign  and  discharge  himself  of  the  trust  created 
by  these  presents  by  notice  in  writing  to  the  said  Canada 
Southern  Railway  Company,  and  to  the  existing  Trustee,  if 
there  be  such,  ninety  days  before  such  resignation  shall  take 
effect,  or  such  shorter  notice  as  they  may  accept  as  adequate 
notice  and  upon  the  due  execution  by  him  of  the  conveyances 
hereinafter  required ;  and  that  the  said  Trustees  or  either  of 
them  may  be  removed  by  the  vote  of  a  majority  in  interest  of 
the  holders  of  the  aforesaid  Bonds  then  outstanding,  the  said 
vote  being  had  at  a  meeting  called  by  the  holders  of  at  least 
Five  hundred  thousand  dollars  of  said  Bonds,  by  advertise- 
ment published  for  six  consecutive  weeks,  by  insertion  once 
per  week  in  a  daily  newspaper  of  large  circulation  in  the 
cities  of  New  York  and  Toronto,  respectively,  and  at  i^aid 
meeting  said  bondholders  may  vote  in  person  or  by  proxy, 
and  their  said  vote  shall  be  attested  by  an  instrument  under 


64 


the  hands  and  seals  of  the  persons  or  their  proxies  so  voting ; 
and  that  in  case  at  any  time  hereafter  either  of  tlie  said 
Trustees  or  any  Trustee  hereafter  appointed,  shall  die  or  re- 
sign or  be  removed  as  herein  provided,  or  by  a  Court  of  com- 
petent jurisdiction,  or  shall  become  incapable  or  unlit  to  act 
in  the  said  trust,  a  successor  to  such  Trustee  shall  be  appointed 
by  the  Board  of  Directors  of  the  eaid  liallway  Company, 
with  the  consent  of  the  holders  for  the  time  being  of  a  ma- 
jority in  interest  of  the  said  Bonds,  evidenced  by  any  writing 
to  that  eflect  from  them  respectively,  or  with  the  consent  of 
a  meeting  duly  held  of  the  said  bondholders,  called  after  ad- 
vertisement in  that  behalf,  published  for  the  time  and  in  the 
manner  hereinbefore  mentioned,  and  tiie  Trustee  or  Trustees 
so  appointed,  with  any  Trustee  so  surviving  or  continuing, 
shall  thereupon  become  vested  with  all  the  powers,  authorities 
and  estates  granted  to  or  conferred  upon  the  parties  of  the 
second  part  by  these  presents,  and  all  the  rights  and  interests 
requisite  to  enable  him  to  execute  the  purposes  of  this  trust 
without  any  further  assurance  or  conveyance  so  far  as  such 
eft'ect  may  be  lawful ;  but  the  surviving  or  continuing  Trustee 
shall  immediately  execute  all  such  conveyances  or  other  in- 
struments as  may  be  fit  or  expedient  for  the  purpose  of  assur- 
ing the  legal  estate  in  the  premises  jointly  with  himself  to 
the  Trustee  so  appointed ;  and  that  upon  the  death,  resignation 
or  removal  of  any  Trustee,  or  any  appointment  in  his  place 
in  pursuance  of  these  presents,  all  his  powers  and  authorities 
by  virtue  hereof  shall  cease,  and  all  the  estate,  right,  title  and 
interest  in  the  said  premises  of  any  Trustee  so  dying,  resign- 
ing, or  being  removed,  shall,  if  there  be  a  co-Trustee  surviving 
or  continuing  in  office,  wholly  cease  and  determine,  but  the 
said  Trustee  so  resigning  or  being  removed  shall,  on  the  writ- 
ten request  of  the  new  Trustee  who  may  be  appointed,  im- 
mediately execute  a  deed  or  deeds  of  conveyance  to  vest  in 
Buch  new  Trustee  jointly  with  the  continuing  Trustee,  and 
upon  the  trusts  herein  expressed,  all  the  property,  rights  and 
franchises  which  may  be  at  that  time  held  upon  the  said 
trusts.  Or  in  case  it  shall  hereafter  at  an 3'^  time  prove  im- 
practicable, after  reasonable  exertions  to  appoint  in  the  man- 
ner hereinbefore  provided,  a  successor  in  any  vacancy  which 


may 


\ 


65 

may  have  happened  in  said  trust,  or  in  case  the  trust  shall 
become  wholly  vacant,  application  on  behalf  of  all  the  holders 
of  the  Bonds  secured  hereby  may  be  made  by  the  surviving 
or  continuing  Trustee,  or  if  the  trust  be  wholly  vacant,  by 
the  application  of  the  holders  of  the  said  Bonds  to  the  ag- 
flfregate  amount  of  One  hundred  thousand  dollars,  to  the  Court 
of  Chancery  in  tlie  Province  of  Ontario,  for  the  appointment 
of  a  new  Trustee,  or  new  Trustees. 

Seventh. — It  is  hereby  declared  and  agreed  that  any  of  the 
Coupon  Bonds,  the  issue  whereof  is  by  these  presents  secured, 
may  at  the  option  of  the  holder  thereof  be  converted  into  or 
exchanged  for  a  like  amount  of  Registered  Bonds,  the  issue 
whereof  is  hereby  secured ;  And  it  is  also  further  agreed, 
that  the  holders  of  the  Registered  Bonds  secured  by  these 
presents,  may  from  time  to  time  transfer  the  same  on  the 
books  of  the  Company,  and  that  new  Registered  Bonds  may 
be  issued  in  the  place  and  stead  of  those  surrendered  for  can- 
celment  on  such  transfer,  and  that  this  mortgage  shall  enure 
to  the  benefit  and  security  of  the  holders  of  such  new  sub- 
stituted Bonds,  which  may  be  issued  on  such  transfer  and 
cancelment.  And  said  Board  of  Directors  in  its  discretion, 
at  any  time  and  from  time  to  time,  may  allow  the  conversion 
or  reconversion  of  Registered  Bonds  into  Coupon  Bonds,  by 
surrender  and  exciiange,  at  tlie  request  of  the  holders  of  such 
Registered  Bonds,  and  such  substituted  Bonds  shall  be  se- 
cured by  these  presents  in  like  manner  as  the  Registered 
Bonds  so  surrendered. 


Eighth. — And  it  is  hereby  further  declared  and  agreed  that 
at  any  time  all  or  any  part  of  the  said  Bonds  whether  regis- 
tered or  coupon,  at  the  option  of  the  holder  thereof,  sl\all  be 
made  by  ■iaid  Company  Sterling  Bonds,  payable  in  Sterling 
money  ot  Great  Britain,  at  the  rate  of  Two  hundred  pounds 
Sterling  for  each  Bond,  and  seven  pounds  Sterling  for  each 
half-year's  interest  or  coupon  ;  and  such  Sterling  Bonds  shall 
be  made  payable  in  London,  England,  or  in  the  City  of  New 
York,  as  sucli  holder  shall  then  elect;  and  such  Sterlir. 
Bonds  shall  be  held  to  be  secured  by  these  presents,  and  issued 


66 


thereunder,  and  to  carry  and  to  be  entitled  to  all  privileges 
of  conversion  or  otherwise,  as  fully  as  the  original  bonds  is- 
sued, or  intended  to  be  issued,  payable  in  lawful  money  of 
the  Dominion  of  Canada.  And  the  said  Company  may,  by 
resolution  of  the  Board  of  Directors,  from  time  to  time,  es- 
tablish offices  in  New  York  and  London  respectively,  for  the 
transfer  of  registered  Bonds,  and  for  converting  Bonds  into 
Sterling  Bonds  as  above. 


Ninth. — And  the  said  Canada  Southern  Railway  Company 
hereby  covenants  and  agrees  to  and  with  the  said  parties  of 
the  second  part,  and  their  successors  and  survivor,  for  the 
benefit  and  in  trust  for  the  holders  of  all  the  said  Bonds,  that 
said   Company  shall  establish  a  Sinking  Fund  adequate  for 
the  redemption  at  par  of  all  the  said  Bonds,  at  or  before  the 
maturity  thereof;  and  that  said  sinking  fund  shall  be  pre- 
served and  used  for  such  redemption,  and  for  no  other  use  or 
purpose;  and  that  said  Company  will  pay  into  said  sinking 
fund,  on  or  before  the  first  day  of  January,  One  thousand 
eight  hundred  and  seventy-five,  the  sum  of  Eighty-two  thou- 
sand dollars,  and  thereafter  will  pay  into  said  sinking  fund 
on  the  first  day  of  January  of  each  succeeding  year  the  sev- 
eral sum  herein  written  after  such  year,  that  is  to  say,  in  the 
year  1876,  $87,000;   in  1877,  $93,000;  in  1878,  $100,000 
in   1879,   $107,000;  in  1880,  $114,000;  in  1881,  $122,000 
in   1882,   $131,000;  in  1883,  $140,000;  in  1884,  $150,000 
in   1885,   $160,000;  in  1880,  $172,000;  in  1887,  $184,000 
in   1888,    $196,000;  in  1889,  $210,000;  in  1890,  $225,000 
in   1891,   $241,000;  in  1892,  $257,000;  in  1893,  $275,000 
in    1894,   $295,000;  in  1895,  $315,000;  in  1896,  $337,000 
in   1897,   $361,000;  in  189>,  $386,000;  in  1899,  $413,000 
in   1900,   $442,000;  in  1901,  $473,000;  in  1902,  $506,000 
in   1903,   $542,000;  in  1904,  $580,000;  in  1905,  $620,000 
in   1906,   $684,000 ;  and  that  on  the  first  day  of  January,  in 
the  year  One  thousand  eight  hundred  and  seventy-five,  and 
yearly  thereafter,  said  Company  shall  pay  and  apply  out  of 
said  sinking  fund,  the  several  sum  so  then  respectively  ap- 
propriated as  above,  for  said  sinking  fund,  to  the  payment 
and  redemption  of  said  bonds  to  the  like  amount  at  par ;  that 


67 

the  particular  Bonds  so  to  be  redeemed  shall  be  determined 
in  every  case  by  lot,  cast  or  drawn  at  some  time  in  the  month 
of  November  next  previous  to  such  redemption,  by  some  dis- 
interested person  or  persons  appointed  by  the  Company; 
and  the  result  of  such  lot,  designating  and  specifying  the  par- 
ticular Bonds  to  be  redeemed,  shall  be  published  in  the  cities 
of  New  York,  and  London,  England,  by  advertisement  in  a 
daily  newspaper  of  each  of  said  cities  at  least  thirty  days  be- 
fore the  day  of  redemption ;  and  that  all  Bonds  so  redeemed 
and  all  coupons  thereof,  shall  be  canceled  by  the  Company 
in  the  presence  of  the  Trustees,  who  shall  keep  a  list  thereof. 
No  interest  shall  accrue  on  any  Bond  so  designated  for  re- 
demption, after  it  thereby  has  become  payable,  and  the  Com- 
pany shall  be  ready  to  pay  the  same. 

In  witness  whereof^  And  in  pursuance  of  a  resolution  of 
its  Board  of  Directors,  passed  on  the  lifteenth  day  of  Decem- 
ber, One  thousand  eight  hundred  and  seventy,  the  party  of 
the  first  part  has  caused  its  corporate  seal  to  be  affixed  to 
these  presents,  at  Fort  Erie,  in  the  Province  of  Ontario, 
Dominion  of  Canada,  and  the  same  to  be  attested  by  the  sig- 
natures of  its  President  and  Secretary,  and  the  said  parties 
of  the  second  part  have  hereunto  set  their  respective  hands 
and  seals  to  testify  their  acceptance  of  the  said  trust,  the  day 
and  year  first  above  written  ;  and  these  presents  are  executed 
in  nine  parts  for  the  purpose  of  registration  in  the  several 
counties  above  mentioned. 


Signed,  sealed  and  delivered, 
in  presence  of 


President. 


Secretary. 
Trustees. 


